# Feb 1st: USC Band Changes



## nest egg (10 Jan 2020)

As of 1st February, small change to USC bands to keep minimum wage earners exempt from the 4.5% rate.  Will mean anyone making that wage, or more, is €15.25 per year better off.  Bands become: €8,472 @ 2%, €49,560 @4.5%

https://www.irishtimes.com/business...eshold-to-reflect-minimum-wage-rise-1.4135924


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## Sconeandjam (15 Jan 2020)

Thanks for the reminder.
USC was brought in the help during the recession. When will they get rid of it? You pay this before you have even earned a penny. Then new rates for self employed.
Election candidates will be at the door. Thus is the first thing I will be asking about. 
Will also be asking about the insurance levy due to Quinn fall out.


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## Protocol (15 Jan 2020)

The USC replaces two previous taxes - the Health levy and the Income levy.

The Health levy had existed for many years, so in that respect, the USC is not an extra tax.


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## Sconeandjam (19 Jan 2020)

Protocol said:


> The USC replaces two previous taxes - the Health levy and the Income levy.
> 
> The Health levy had existed for many years, so in that respect, the USC is not an extra tax.


Oh yes I forgot about that. Thanks for reminder.
Big difference was health levy and income levy the amount was 1% up to 100k and the other is 2%  up to 100k. So that is around 3k.
The USC has staggered levels of charge so if you earn up to 100k you will pay around 7k or 8k. These are only very rough calculations. Big difference in the amount handed to the government purses. 
FG did said before last election that they will be abolish it. Suppose after looking at the amounts handed to the government coffers I will not hold my breath.


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## nest egg (19 Jan 2020)

Sconeandjam said:


> ...The USC has staggered levels of charge so if you earn up to 100k you will pay around 7k or 8k. These are only very rough calculations....



You'll pay about 5k in USC on an income of 100k.  To pay 8k, you'd need to be earning 140k. Point taken though, it's a significant earner, and also in no short part due to the very few reliefs available on it (can't offset pension contributions etc). I strongly suspect that's why it's still with us, and likely to stay that way.


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## Suz2015 (24 Feb 2020)

Has the new USC rates taken effect for anyone?


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## SeamusMcSpud (24 Feb 2020)

Suz2015 said:


> Has the new USC rates taken effect for anyone?


I haven't seen any change yet.


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## michaelm (25 Feb 2020)

The most change you'll see, if paid monthly, is €1.27 (£1 punt in old money).


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## Purple (26 Feb 2020)

That'll take the sting out of the wealth tax!


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## michaelm (28 Feb 2020)

I seems that while this tweak applies from 1st Feb the lead-time for Revenue/payroll software updates is such that it will be March before it is reflected in net pay.  I now expect to see €1.39 extra in my March pay packet (probably below LIGO detection threshold).


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## NoRegretsCoyote (28 Feb 2020)

It seems rather crude to take account of the mere 29k people who are full-time on the NMW according to the CSO. That's about 1.4% of all employment.


It's about a fiscal cost of €20m pa. I've never understood this theology about preventing low earners from paying tax on their income.


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