S.I. No. 619/2015 - Universal Social Charge (Amendment) Regulations 2015.


Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 5th January, 2016.

The Revenue Commissioners, in exercise of the powers conferred on them by section 531AAB of the Taxes Consolidation Act 1997 (No. 39 of 1997), hereby make the following regulations:

1. These Regulations may be cited as the Universal Social Charge (Amendment) Regulations 2015.

2. The Universal Social Charge Regulations 2011 ( S.I. No. 658 of 2011 ) are amended–

(a) for the tax year 2015 and subsequent tax years, in Regulation 17–

(i) in subparagraph (b) of paragraph (1) by substituting “who is paid weekly or fortnightly” for “who is paid weekly”,

(ii) by substituting the following for paragraph (2):

“(2) Regulation 15 shall not apply to payments of relevant emoluments to which this Regulation applies and on making any such payment the employer shall deduct USC therefrom in accordance with Regulation 15 as if the payment had been made on the previous 1 January.”,

and

(iii) by deleting paragraph (3),

and

(b) for the tax year 2016 and subsequent tax years, in Regulation 15 by substituting the following paragraph for paragraph (2):

“(2) The cumulative USC shall be the amount represented by A in the formula–

A = (B x 1%) + (C x 3%) + (D x 5.5%) + (E x 8%)

where–

B is the amount (that may be nil) of the cumulative relevant emoluments chargeable to USC at the rate of 1% up to and including the rate cut-off point for that rate,

C is the amount (that may be nil) of the cumulative relevant emoluments chargeable to USC at the rate of 3% up to and including the rate cut-off point for that rate,

D is the amount (that may be nil) of the cumulative relevant emoluments chargeable to USC at the rate of 5.5% up to and including the rate cut-off point for that rate, and

E is the amount (that may be nil) of the cumulative relevant emoluments that exceeds the rate cut-off point referred to in the meaning of D.”.

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GIVEN under my hand,

22 December 2015.

NIALL CODY,

Revenue Commissioner.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation).

These Regulations amend the Universal Social Charge Regulations 2011. The effect of these changes is to—

1. Ensure that employees who have an extra pay day falling on 31 December 2015 and in subsequent years continue to pay the same amount of USC on that extra pay day as they paid on their previous pay days, and

2. Give effect to the changes announced in the Budget in relation to the USC rates and bands that will apply for 2016 and subsequent years.