PRSI and Health Contribution for self-employed people

namenotavailablE

I did a quick search of this forum and didn't find the answer to the following (apologies if it's been covered somewhere).

Am I correct in the following calculating procedure when calculating PRSI and Health contribution for a self employed person whose income is solely derived from Schedule D sources :

Total tax adjusted Schedule D income XX
Less:
Prior years Case I losses (NOT DEDUCTED)
Current year Case I losses (DEDUCTED)
Capital allowances (DEDUCTED)
Pension contributions (NOT DEDUCTED)
Income protection/Perm Health premium (NOT DEDUCTED)

The foregoing gives the value of income liable to PRSI and Health Contribution at various rates. The minimum amount of PRSI payable is €253 pa. If there is anything I've left out please advise!

[Cross posting disclosure- I've also posted this query on the Askaboutmoney website here ]

namenotavailablE

[Bump]

Anyone got information on this?

I've been unable to get an absolutely definitive answer from the tax books I've checked or a search on the www.revenue.ie website yet it MUST be defined somewhere

misspiggy40

Hi. I have just gone back to my AITI text and it confirms your calculation. It doesn't mention any other possible deductions. It says, as you have, that losses carried forward and pension contribs are not deductable but that any loss from another trade in that year is deductable. Capital allowances for current year deductable.

namenotavailablE

Thanks, MissPiggy- appreciate your response.

misspiggy40

I just noticed that there is a bit on the Welfare site about this.

http://www.welfare.ie/EN/Publications/SW74/Pages/5Whatisexcludedfromreckonableincome.aspx

namenotavailablE

Thanks, yes- I was aware of that site but it didn't clearly indicate that PAYMENTS of permanent health insurance premia don't affect your PRSI/Health contribution. I guessed that as RECEIPTS from such an insurance policy were specifically excluded from reckonable income that the payments wouldn't attract relief. It also omitted to state that current year losses only (nothing for losses forward) and capital allowances can be deducted.

As an aside, is it just me or am I correct to be puzzled by the inclusion of 'capital allowances' on that site as a type of income which is ignored? I'd never have classed capital allowances as income! Perhaps they meant capital receipts/ grant type receipts?!

misspiggy40

I know that they cannot cover all the bases but the info on Self Employed rates of all kinds is very hard to collate.