Revenue Note for Guidance
This section provides for the recovery of USC that is unpaid at the end of a year of assessment.
(1) Where any USC is unpaid at the end of a year of assessment, and the employer has received the appropriate notification from Revenue, the employer is to be treated as making a payment of relevant emoluments (amount to be determined in accordance with subsection (2)) to the employee in the following year of assessment.
(2) The amount of the notional emoluments representing the unpaid USC is an amount that, when it is charged to USC, would produce an amount of USC that is equal to the amount of the underpayment. This amount of notional emoluments is to be set out in the notification sent to the employer by Revenue.
(3) The amount of the notional emoluments is to be apportioned over the subsequent year of assessment in accordance with the way in which the employee is paid, i.e. weekly, monthly etc.
(4) Revenue may adjust the employee’s income tax tax credits or rate bands in the subsequent year of assessment to collect the unpaid USC.
(5) This subsection allows Revenue, where an assessment is not otherwise made, to make an assessment to recover whatever amount of USC Revenue considers is unpaid for a particular year of assessment. Where such an assessment is made, the usual provisions of the Tax Acts in relation to assessment, collection and recovery of unpaid tax apply.
Relevant Date: Finance Act 2021