Advice re Universal Social Charge

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Emomc Posts: 2069
I am looking for a bit of information re the Universal Social Charge. I am just getting our medical receipts for 2012 together to do our tax refund claim for last year and when my hubbie gave me his P60 it shows that he had zero USC deducted last year. His pay for 2012 was in the region of €30k so it should have been deducted. I phoned the guy in the office who does the payroll for the company which he works for, and he says while he thought it was strange he was “told” that my hubbie was exempt from USC last year (I assume he means The Revenue Commissioners told him this). I cannot find his tax credit cert from last year to check this, however I did come across his P60 for 2011 which shows he did pay USC in 2011!!! I as just wondering if anyone out there knows if there is any reason why we would have had an “exemption” for 2012. I don’t believe such a thing exists (we don’t have a medical card if this is a factor). I am a bit worried about this now as I feel he owes money for 2012. Or my big question is does the employer owe this? I don’t want to apply for any possible tax refund now on our medical expenses as I am afraid they will pick up on this underpayment first (we are taxed as a married couple). Any advice appreciated x
teapotty Posts: 2085
I think your gut is right, there seems to be no reason why someone with income of €30k would pay no USC. The exemption threshold is circa €10k. Sorry to pry but is €30k your total household income? Maybe in that case it could be possible that the income is exempt? I'd be raging with his work if they have f*ucked it up but I think there's no point burying your head, you might as well ring revenue and just square it up. Not nice, I know.
lulu126 Posts: 1095
[quote="teapotty":2n2kn2ez] I'd be raging with his work if they have f*ucked it up but I think there's no point burying your head, you might as well ring revenue and just square it up. Not nice, I know.[/quote:2n2kn2ez] If work's to blame though, could your DH not talk to them about taking the hit? This happened to me a few years ago- my job hadn't calculated my deductions properly but I didn't know about it and they took the hit because it wasn't my fault.
dreambaby2013 Posts: 2445
Hi Emomc - this site might help but there is no reason that i can see why someone with a payment of 30k would have a full exemption. ... harge.html Does your husband get a weekly/monthy payslip? If so was he paying usc charge according to that? As far as i know it is up to an employee to make sure the details of tax credits/cutt off and usc are right on there payslip and to question the employer if they have not got the correct information. The revenue's attitude would be that if the employer didn't deduct it then you dh would be resonable for the bill. If however they were deducting it from his wages and just didn't pay the revenue the amount they deducted then the employer would be libable. If he wasn't getting a payslip and was told for example that he would get x amount after all deductions then he would have a case to argue with the employer. I wouldn't do nothing about it as you don't want the problem to build into another year.
teapotty Posts: 2085
[quote="lulu126":2wd71b5j][quote="teapotty":2wd71b5j] If work's to blame though, could your DH not talk to them about taking the hit? This happened to me a few years ago- my job hadn't calculated my deductions properly but I didn't know about it and they took the hit because it wasn't my fault.[/quote:2wd71b5j][/quote:2wd71b5j] It was great that they did that but I'm pretty sure it was out of goodwill and that they didn't have to. I think with all matters relating to tax, including PAYE, the individual is ultimately responsible to make sure they're paying the correct amounts of tax. Of course if the employer was deducting it and not paying it to Revenue then that would be a whole other kettle of fish and they would most definitely be liable.
Vintage Darling Posts: 430
As the others have said, I would get on to Revenue now and find out the correct information from them. I would also check your OH's payslips to make sure that the USC wasn't being deducted and not paid by his employer. If you do owe Revenue then they normally allow you to repay the amoun through increased tax deducted from your OH's wages over 3 years or longer if you have are having issues repaying it. You can also make a patment direct to them to clear the out-standing tax. If you are entitled to any tax refunds that amount will be deducted from your out-standing liability so you won't actually receive the refund from them.
Emomc Posts: 2069
Thanks for the advice everyone. I am also working so it is not the total household income. He has been working for this company for two years and only started getting payslips this year O:|. But he did get P60's for 2011 & 2012 and all seems to be on order PAYE/PRSI wise. I am so annoyed about this as we had a good bit of medical expenses to claim for 2012 and I had banked on putting this against our first holiday in 4 years :o(
Vintage Darling Posts: 430
[quote="Emomc":3ehr4w1h]Thanks for the advice everyone. I am also working so it is not the total household income. He has been working for this company for two years and only started getting payslips this year O:|. But he did get P60's for 2011 & 2012 and all seems to be on order PAYE/PRSI wise. I am so annoyed about this as we had a good bit of medical expenses to claim for 2012 and I had banked on putting this against our first holiday in 4 years :o([/quote:3ehr4w1h] Is there a reason why he wasn't getting payslips prior to this year? His company should have back-up for why he wasn't paying the USC in 2012. They would need authorisation from somewhere before tehy woudl adjust his tax information.
bondijunction Posts: 805
When revenue sends your tax credits to your employer (these are called P2C notice) and it has a section that can be ticked for USC exemption. In our payroll system its just a tick on the employee records and easily changed by.mistake so it could have come from revenue or it might be a mistake on your employers side.
Emomc Posts: 2069
[quote="bondijunction":gx15ljoj]When revenue sends your tax credits to your employer (these are called P2C notice) and it has a section that can be ticked for USC exemption. In our payroll system its just a tick on the employee records and easily changed by.mistake so it could have come from revenue or it might be a mistake on your employers side.[/quote:gx15ljoj] This is actally what the guy in the office said he got, he is quite clear about that, and I am sure I could get a copy if I asked. It must have been a mistake from the Revenue end.