Is USC payable on 11k pension + State pension?

P

Protocol

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Scenario:

Work pension = 11k
State pension = 248.30 pw = 12,911 pa

Combined pension income = 23.9k approx.

Is USC payable on this?

I am getting confused between gross and total incomes in the descriptions below.

[broken link removed]

What is USC?
USC is a tax payable on your total income. Total income for USC purposes includes things such as:
You do not pay USC on:

Captial allowances for plant & machinary and certain buildings are allowed as a deduction before USC is calculated.

There is no relief from USC for employee pension contributions.

If your total income exceeds €13,000 you pay USC on your full income.



Does the 13k exemption limit refer to total income, or income excl State pension?
 
I would read it such that you pay USC on total income excluding State pension.
 
Your income liable to USC is your work pension ie 11k
This is below the limit for USC 13k
So no USC is payable
 
Ok, thanks.

So you deduct or exclude the State Pension, and if the remaining income is less than 13k, then you pay zero USC in 2020?
 
Protocol said:
So you deduct or exclude the State Pension, and if the remaining income is less than 13k, then you pay zero USC in 2020?
Click to expand...

Yes that's right.

If you want the legislation it is contained in TCA 1997, Part 18D.

USC is applied to "aggregate income", basically income from all sources other than that specifically excluded by Part 18D - TCA 1997 s 531AL.

DEASP payments are excluded from aggregated income .

USC is not payable where the "aggregate income" does not exceed €13,000 for 2020 - TCA 1997 s 531AM (2).

In your scenario, the aggregate income would be €11,000.
 
Last edited:
Are all social welfare payments excluded from USC even where you have income >25k?
 
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