My family qualified for a full medical card when we applied for it in 2012. We were both working casually at the time, and we were paying (and still pay) €1500 pm for our mortgage and €400 childcare costs. We have an arrears issue on our mortgage which we also declared on our application, and these arrears are still outstanding, however we are working with our lender with an agreed repayment plan, and chipping away at them until a final resolution can be agreed with them.
Last October we received a letter from the HSE stating that our card (like many other families) was now subject to a review, and we were asked to complete a form and return supporting documentation . Did all of that, and were told that our review would be processed by 31 December. This deadline passed, and they have allowed us to keep the card until 31 December whilst they are continue processing the application.
During all of this time I was unaware that the USC for full medical card holders is at a reduced rate of 4%. As our card is under review, the revenue commissioners were advised that we are no longer medical card holders, and the rate of USC was increased to 7%. The net effect of this on my fortnightly pay (I'm a public servant) was an increase on the USC deduction from €58 to €119.
I rang the Revenue Commissioners straight away yesterday to query this, and was told that the rate I was paying would be amended to reflect that of a medical card holder, as the card is still valid when she cross-reffed with the HSE. Happy with this for now, as this additional tax will make things very tight for us if we lose the card, and I have a bit of time to make provision for any possible drop in income. I have no idea when the HSE will have completed the review, and whether or not we will keep our card or not. It's going to be a decision made by someone we will never speak to, and we have provided all documentation outlining the stretched financial position in we are in and the arrears issue we are dealing with.
My main concern now is, if the card is gone, andf we find out soon, can the Revenue penalise me for appealing the higher rate of USC this week? I was shocked when I heard that the USC had doubled, but I was in possession of a valid medical card at the time I made the call, and used it last week for an appointment with the doctor and an antibiotic for my youngest child! I understand that one in every two cards are to be reviewed, if a sizeable proportion of these reviews revoke the cards, there will be a lot of tax collected and a reduction in consumer spending.
Last October we received a letter from the HSE stating that our card (like many other families) was now subject to a review, and we were asked to complete a form and return supporting documentation . Did all of that, and were told that our review would be processed by 31 December. This deadline passed, and they have allowed us to keep the card until 31 December whilst they are continue processing the application.
During all of this time I was unaware that the USC for full medical card holders is at a reduced rate of 4%. As our card is under review, the revenue commissioners were advised that we are no longer medical card holders, and the rate of USC was increased to 7%. The net effect of this on my fortnightly pay (I'm a public servant) was an increase on the USC deduction from €58 to €119.
I rang the Revenue Commissioners straight away yesterday to query this, and was told that the rate I was paying would be amended to reflect that of a medical card holder, as the card is still valid when she cross-reffed with the HSE. Happy with this for now, as this additional tax will make things very tight for us if we lose the card, and I have a bit of time to make provision for any possible drop in income. I have no idea when the HSE will have completed the review, and whether or not we will keep our card or not. It's going to be a decision made by someone we will never speak to, and we have provided all documentation outlining the stretched financial position in we are in and the arrears issue we are dealing with.
My main concern now is, if the card is gone, andf we find out soon, can the Revenue penalise me for appealing the higher rate of USC this week? I was shocked when I heard that the USC had doubled, but I was in possession of a valid medical card at the time I made the call, and used it last week for an appointment with the doctor and an antibiotic for my youngest child! I understand that one in every two cards are to be reviewed, if a sizeable proportion of these reviews revoke the cards, there will be a lot of tax collected and a reduction in consumer spending.