Revenue announced in eBrief 51/09 that under the Health Contribution Act, a separate €100,100 threshold applies to self assessed income and PAYE income for 2007 and 2008. However, Income Tax assessment which issued for those years charged the first €100,100 of the combined PAYE income and self assessed income at 2% and the balance at 2.5%.

The Health Contribution calculation system for 2008 has been updated and all assessments or amended assessments issued after 26 August 2009 will show the correct Health Contribution charge for 2008. A separate development for 2007 is in place. Revenue will issue amended assessments for both years as appropriate to the taxpayers concerned.

Revenue advise that only one threshold of €100,100 applies for 2009.

The full eBrief is available below at 2.03.