The Universal Social Charge came into effect on the 1st of January 2011. This ia a tax payable on gross income, includind notional pay, after any relief for certain trading losses and capital allowances, but before pension contributions. This replaces the health contribution and income levy.

All individuals are liable to pay the USC if there gross income exceeds €4,004 per annum for 2011 and €10,036 for 2012.

The rates applicable are as follows:

                                                      No Medical             With Medical

                                                           Card                                Card 

The first €10,036                              2%                                     2%

The next €5,980                               4%                                     4%

The remainder                                  7%                                     4%


Also people aged 70 or over pay 4% on income over €16,016 and not at 7%.

What people do not realise is they may have overpaid there USC charge and should contact their accountant to look into it. Especially people that have a medical card should look into the matter. If you have any queries on the above please contact us.