The basis of deduction for the USC will change from week-one to a cumulative basis with effect from 1 January 2012. Revenue has confirmed in eBrief No. 54/11 that the operation of cumulative USC will mirror that presently used in PAYE. The USC thresholds will be managed in the same manner in which cut-off-points are currently managed in PAYE.

To facilitate this change to a cumulative USC, amendments will be made to a number of PAYE forms and outputs from 1 January 2012. These include:

• Employer(s) tax credit certificate (P2C)
• Employees Tax Credit Certificate (TCC)
• The Form P60
• The Form P45

Revenue has advised that the Revenue On-line System (ROS) will also be upgraded to accommodate this change.