21st September 2009

Health Contribution
The Health Contribution was increased from 2% to 2.5% for income in excess of €100,100 for 2007 and 2008. Income Tax assessments which issued for those years charged the first €100,100 of income at 2% and the balance at 2.5%. It has recently been clarified that, under the Health Contribution Act (as amended by the Social Welfare Act 2006), a separate €100,100 threshold applies to reckonable income for 2007 and 2008. The cases affected are self assessed customers who have PAYE income, as separate thresholds of €100,100 apply to self assessed income and PAYE income. The Health Contribution calculation system for 2008 was updated on 26 August 2009 so that all assessments or amended assessments issuing after that date will show the correct Health Contribution charge. A separate devel opment to address 2007 is expected to be available on 23 September 2009. Once this is in place, Revenue will review cases and issue amended assessments for 2007 and 2008, where appropriate.

The Health Contribution legislation has been amended to provide that only one threshold of €100,100 applies for 2009.

Source: Revenue Commissioners. www.revenue.ie. Copyright acknowledged.