Universal Social Charge query

B

Blue Thunder

Registered User
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The rates and bands for the Universal Social Charge are as follows from revnue.ie:


  • 2% on the first €10,036
  • 4% on the next €5,980
  • 7% on the balance.
However, these standard rates are modified in certain circumstances. In the case of individuals aged 70 or over, and individuals who hold full medical cards, the 4% rate applies to all income over €10,036.

Can anyone confirm if a Northern Ireland resident holding a medical card there would qualify for the 4% USC rate for all income over €10,036 or is it only applicable to medical cards held in ROI?
 
I don't know, but I can't really see how the Irish legislation could recognise a UK medical card.
 
trigger3 said:
Can anyone confirm if a Northern Ireland resident holding a medical card there would qualify for the 4% USC rate for all income over €10,036 or is it only applicable to medical cards held in ROI?
Click to expand...

Yes. Holders of Northern Ireland medical cards will be treated as holding a full medical card for the purpose of qualifying for the 4% rate.

See USC FAQs on the Revenue website - pg 19.
 
Last edited:
smeharg said:
Yes. Holders of Northern Ireland medical cards will be treated as holding a full medical card for the purpose of qualifying for the 4% rate.

See USC FAQs on the Revenue website - pg 19.
Click to expand...

Thanks Stuart, I stand corrected! ;)
 
smeharg said:
Yes. Holders of Northern Ireland medical cards will be treated as holding a full medical card for the purpose of qualifying for the 4% rate.

See USC FAQs on the Revenue website - pg 19.
Click to expand...

Thanks, so how does the employer know to charge USC at the lower rate of 4%. Is there a different PRSI class for medical card holders or the likes?
 
trigger3 said:
Thanks, so how does the employer know to charge USC at the lower rate of 4%. Is there a different PRSI class for medical card holders or the likes?
Click to expand...

Well they know because you tell them you've a medical card!

The USC isn't linked to the PRSI class, if the employer is using payroll software they would tick a box to say the employee has a medical card and the 4% rate applies...
 
So, anyone from NI with a medical card - not means tested - pays 4% on 16K p.a. on irish income.
But the ROI person pays the full 7% -unless they have a means tested medical card ??

I saw the Revenue F and Q and ,yes, this seems to be the case.

Somewhat odd and unfair ?
 
Until last year a NI resident's medical card was not enough to qualify for exemption from the health levy. They had to have an exemption from prescription/GP charges in order that their NI medical card was equal to an ROI medical card.

This year with the introduction of USC the rules changed so that anyone living in NI but working here pays 3% less tax(USC) on 16k+ p.a. than ROI residents working here.

I've no idea how many cross border workers there are getting this 3% bonus ,but surely this is something that should be looked at in the Budget.
 
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