Revenue has published an updated Tax and Duty Manual regarding the Universal Social Charge (USC) Regulations 2018. The manual has been updated to reflect the changes made to the operational aspects relating to the collection and reporting of USC as a result of USC Regulations 2023 (S.I. No. 700 of 2023).
The Regulations are updated:
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To ensure that gains realised by the exercise/assignment/release of a right on or after 1 January 2024 and chargeable to income tax under section 128 TCA 1997 are treated as notional payments by the employer and the gain is calculated by reference to section 128(4) TCA 1997.
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To recognise changes which limit the repayment and credit due for universal social charge to a 4 year period commencing from the end of the year of assessment in which the Income Tax month falls, to provide for refusal of a repayment to be notified in writing and a right of appeal by persons aggrieved by the application of the new measures and to provide that income tax assessing provisions in section 990 TCA 1997 apply to USC.
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To provide that an employer may, in certain circumstances and where no payment of emolument is made during the last income tax month of the year, make a repayment of USC to an employee during the last income tax month of the year so that the employee can get the benefit of any unused rates and bands at the end of the year under the cumulative PAYE system.