Universal Social Charge Regulations 2011
15 Calculation and making of deduction or repayment where certificate of rate cutoff points held
(1) On any payment of relevant emoluments to or on behalf of an employee in respect of whom the employer holds a certificate of rate cut-off points, the employer, except where these Regulations otherwise provide, shall ascertain—
(a) the cumulative relevant emoluments of that employee at the date of payment, and
(b) by reference to the certificate of rate cut-off points in respect of that employee, the cumulative rate cut-off point for each rate corresponding to the date of payment,
and, by reference to the amounts referred to in subparagraph (a) and each of the amounts referred to in subparagraph (b), determine the amount of the cumulative USC in respect of the cumulative relevant emoluments in accordance with the formula in paragraph (2).
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(2) The cumulative USC shall be the amount represented by A in the formula—
A = (B × 2%) + (C × 4%) + (D × 7%)
where—
B is the amount (that may be nil) of the cumulative relevant emoluments chargeable to USC at the rate of 2% 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 charge able to USC at the rate of 4% up to and including the rate cut-off point for that rate, and
D 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 C.
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(2) The cumulative USC shall be the amount represented by A in the formula—
A = (B × 1.5%) + (C × 3.5%) + (D × 7%) + (E × 8%)
where—
B is the amount (that may be nil) of the cumulative relevant emoluments chargeable to USC at the rate of 1.5% 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 3.5% 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 7% 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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(2) The cumulative USC shall be the amount represented by A in the formula—
A = (B × 1%) + (C × 3%) + (D × 5.5%) + (E × 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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(2)The cumulative USC shall be the amount represented by A in the formula—
A = (B × 0.5%) + (C × 2.5%) + (D × 5%) + (E × 8%)
where—
B is the amount (that may be nil) of the cumulative relevant emoluments chargeable to USC at the rate of 0.5% 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 2.5% 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% 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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(2) The cumulative USC shall be the amount represented by A in the formula—
A = (B x 0.5%) + (C x 2%) + (D x 4.75%) + (E x 8%)
where—
B is the amount (that may be nil) of the cumulative relevant emoluments chargeable to USC at the rate of 0.5% 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 2% 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 4.75% 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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(3) If the cumulative USC determined in accordance with paragraph (2) exceeds the cumulative USC corresponding to the employee’s cumulative rel evant emoluments at the date of the last preceding payment of relevant emoluments (in this Regulation referred to as the “previous cumulative USC”), the employer shall deduct the excess from the relevant emoluments on making the payment of relevant emoluments.
(4) If the cumulative USC determined in accordance with paragraph (2) is less than the previous cumulative USC, the employer shall repay the difference to the employee on making the payment of relevant emoluments.
(5) If the cumulative USC determined in accordance with paragraph (2) is equal to the previous cumulative USC, the employer shall neither deduct nor repay USC when the payment of relevant emoluments is made.
(6) Where the payment of relevant emoluments is the first such payment in the USC year, the employer shall deduct the cumulative USC as determined in accordance with paragraph (2) from the relevant emoluments on making the payment of those relevant emoluments and paragraphs (3), (4) and (5) shall not apply.
(7) The employer shall record the following particulars in relation to every payment of relevant emoluments that the employer makes to or on behalf of the employee:
(a) the date of the payment;
(b) the amount of the relevant emoluments;
(c) in relation to the date of payment—
(i) the cumulative relevant emoluments,
(ii) the cumulative USC, that is, the amount represented by A in the formula in paragraph (2), and
(iii) the amount of USC, if any, deducted or repaid on making the payment of relevant emoluments.
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Substituted by USC(A)R16 s2. With effect from 2017 and subsequent years as per S.I. No. 654 of 2016.