# Universal social charge on rental income



## landlord (14 Mar 2012)

Do you pay the universal social charge on your gross or net rental income?


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## mandelbrot (14 Mar 2012)

Net. As in gross rents received minus deductible expenses such as interest (75%), repairs etc...


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## landlord (14 Mar 2012)

mandelbrot said:


> Net. As in gross rents received minus deductible expenses such as interest (75%), repairs etc...


 

Yep I would agree !!!!!!!!
Thats why i thought it was strange that The ROS calculator has the figure as in gross rents received minus deductible expenses as you mentioned....... all execpt CAPITAL ALLOWANCES. 
I emailed a revenue officer and this seems to be confirmed. 
Surely that cant be correct?

Also just wandering on the P60 why my "gross pay for universal social charge purposes" is much higher than my total pay figure.

many thanks......


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## mandelbrot (14 Mar 2012)

It is entirely correct, because capital allowances aren't a deduction in arriving at income for USC purposes (and if you look at the tax return you'll see they are entered separately from the net rents). A lot of people avail of capital allowances (on industrial buildings etc), as a means of sheltering their rental income and thereby avoiding tax. The whole point of the USC is to widen the net, and charge income that otherwise was going untaxed.

Ditto with your P60, if you have a pension / PRSA / permanent health insurance contribution going through payroll, then while you may be getting a deduction for income tax you will still pay USC on it.


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## landlord (15 Mar 2012)

mandelbrot said:


> It is entirely correct, because capital allowances aren't a deduction in arriving at income for USC purposes (and if you look at the tax return you'll see they are entered separately from the net rents). A lot of people avail of capital allowances (on industrial buildings etc), as a means of sheltering their rental income and thereby avoiding tax. The whole point of the USC is to widen the net, and charge income that otherwise was going untaxed.
> 
> Ditto with your P60, if you have a pension / PRSA / permanent health insurance contribution going through payroll, then while you may be getting a deduction for income tax you will still pay USC on it.



Thanks for that reply..... Any idea where on the revenue site I can find this info. Thanks


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## mandelbrot (15 Mar 2012)

landlord said:


> Thanks for that reply..... Any idea where on the revenue site I can find this info. Thanks



Section 531 AU, Page 10 of this: [broken link removed]


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