Farmers won’t feel effects of USC until 2012

THE Universal Social Charge came into effect on New Year’s Day last, however many of us farmers won’t feel the full effect of the USC until 2012 because our tax is paid in arrears.

The charge applies at the following rates — 2% on farming profits and other income under €10,036, 4% on income over €10,036, 7% on income over €16,016, and at 10% on income over €100,000.

The USC replaces the former income levy and health levy which applied on income up until December 31, 2010. When paying tax in October of this year farmers will in fact be paying tax under the old rules; however, if paying preliminary tax then accountants will need to calculate preliminary tax for 2011 based on the new rules.