I think a relative of mine has been underpaying the USC. I only came across this when checking a few things after the USC threshold was raised in the budget.
Basically the person is aged over 70 and has 3 pensions
1) a private pension of about 3500 p.a
2) a private pension of about 8500 p.a
3) a state pension of about 6000 p.a
I believe the state pension is not counted either for the threshold or for calculating the amount of USC due. Can anyone confirm?
Even ignoring the state pension, the income from the two private pensions is clearly over both the old USC threshold and the new threshold.
The provider of pension 2) above has been deducting USC. But the provider of pension 1) has not.
I think what need to happen here is the USC needs to be paid on both pensions 1) and 2) from now on and the Revenue need to be informed about the possible underpayment for 2011.
3500 + 8500 = 12,000. I think they should be paying 2% of 10,000 and 4% of 2000.
This is also making me question whether the person is paying the correct income tax. He is married and his wife has a pension of about 35k. I haven't looked into the tax yet.
Basically the person is aged over 70 and has 3 pensions
1) a private pension of about 3500 p.a
2) a private pension of about 8500 p.a
3) a state pension of about 6000 p.a
I believe the state pension is not counted either for the threshold or for calculating the amount of USC due. Can anyone confirm?
Even ignoring the state pension, the income from the two private pensions is clearly over both the old USC threshold and the new threshold.
The provider of pension 2) above has been deducting USC. But the provider of pension 1) has not.
I think what need to happen here is the USC needs to be paid on both pensions 1) and 2) from now on and the Revenue need to be informed about the possible underpayment for 2011.
3500 + 8500 = 12,000. I think they should be paying 2% of 10,000 and 4% of 2000.
This is also making me question whether the person is paying the correct income tax. He is married and his wife has a pension of about 35k. I haven't looked into the tax yet.