Revenue eBrief No. 001/23

06 January 2023

Universal Social Charge

Tax and Duty Manual Part 18D-00-01 – Universal Social Charge – has been updated to reflect the following changes resulting from the passing of Finance Act 2022:

• Paragraph 4 has been updated to account for the increase in the USC rate thresholds in line with increases to the National Minimum Wage.
• Paragraphs 6.1 and 11.3 have been updated to confirm that employer contributions to a PEPP (Pan-European Pension Product) are not considered relevant emoluments for the purposes of USC.
• Paragraph 11.2 has been updated to reflect that from 1 January 2023 employer contributions are not considered a taxable benefit in kind following an amendment to section 118 TCA 1997.
• The following USC exempt payments have been added to the list of exemptions in paragraph 12.2:
  • Section 192J – Electricity costs emergency benefit payment
  • Section 192JA – Payments under Electricity Costs Emergency Benefit Scheme II
  • Section 192K – Pandemic Special Recognition Payment
  • Section 192L – Ex Gratia Payment in Respect of an Incorrect Birth Registration
  • Section 192M – Payments under Covid-19 Death in Service Ex-Gratia Scheme for Health Care Workers
  • 192N – Payments in relation to Ex-Gratia Scheme for Community Employment Scheme Supervisors and Assistant Supervisors.
• Paragraph 13 has been updated to confirm that the reduced rate of USC for medical card holders has been extended for one further year, to the 2023 year of assessment.