Taxes Consolidation Act 1997 section 531AY

Recovery of unpaid universal social charge

Section 531AY provides rules for the recovery of universal social charge (USC) that remains unpaid at the end of a tax year.

• Where USC remains unpaid for a tax year and is not otherwise recovered, the employer is treated as making a payment of notional emoluments to the employee in the following tax year, based on a notice from an inspector.
• The notional emoluments are the amount that, when charged to USC, would produce USC equal to the underpayment; this amount is apportioned over the following tax year in line with the employee's pay frequency.
• An inspector may adjust the employee's tax credits and standard rate cut-off point in any subsequent tax year to collect the unpaid USC.
• Where no assessment to USC would otherwise be made, an inspector may make an assessment to the best of his or her judgement, and the normal income tax rules on assessment, collection and recovery apply, excluding provisions relating to allowances, deductions or reliefs.