Self Employed PRSI

Sydney2007

Currently the self employed pay PRSI at 3% on all income (no cap) and get a Contributory Old Age Pension at the appropriate time, and also have an entitlement to Survivors Pension. But they afre not entitled to any payment when they become unemployed/their business collapses, and have to wait until they are destitute and in a position to claim the means tested Job Seekers' Allowance.
Now, following the Budget, the self employed will pay PRSI at the rate paid by all employees - 4% - on all their income. Does this mean they will also become entitled to similar benefits, and, in this case, will the increase in the rate be sufficient for the government to pay the benefits, or will the increase, in fact, cost the government money?
If not, it's grossly unfair. Self employed already pay more tax on similar incomes than employees, as they don't get the PAYE tax credit. It will add insult to injury if they have to pay the same rate of PRSI for very little benefit.

Builderfromhell

Loads of self employed people very disgruntled about this.
I employed a lot of people on PAYE over the years and so would have paid;
PAYE
PRSI on employees
Income Tax
VAT

and indirect tax on fuel, etc.

Now business is gone, revenue giving me grief for moeny io don't have but entitled to nothing.
Contributory pension is even questionable as that money is being used to bail out banks

danbohan

Sydney2007 wrote: »

Currently the self employed pay PRSI at 3% on all income (no cap) and get a Contributory Old Age Pension at the appropriate time, and also have an entitlement to Survivors Pension. But they afre not entitled to any payment when they become unemployed/their business collapses, and have to wait until they are destitute and in a position to claim the means tested Job Seekers' Allowance.
Now, following the Budget, the self employed will pay PRSI at the rate paid by all employees - 4% - on all their income. Does this mean they will also become entitled to similar benefits, and, in this case, will the increase in the rate be sufficient for the government to pay the benefits, or will the increase, in fact, cost the government money?
If not, it's grossly unfair. Self employed already pay more tax on similar incomes than employees, as they don't get the PAYE tax credit. It will add insult to injury if they have to pay the same rate of PRSI for very little benefit.

no change in benefits for self employed , ie still none . this is just more robbery ,you can have a pension at 68 or 70 which is not means tested dont bet on it been worth anything from this bankrupt state .

Sydney2007

It looks like it is just more daylight robbery! Does the government not realise that the self-employed are the backbone of the economy? There are far more people employed by self employed running small businesses than by multi-nationals or in the public service. Yet the self employed are treated with scant respect, and no consideration when they fall on hard times. It is so frustrating, I am sure, Builderfromhell, to see your ex employees obtaining State Benefits while you, their erstwhile employer who paid all their taxes, provided their employment and place of work etc. now get absolutely nothing as a reward!
And I have to say I worry about the entitlement to a Contributory Pension too - I can see, on the horizon, some mechanism for means testing it, particularly for the self-employed. And that's in the near future - I am of an age where I will be entitled to it upon reaching 66! So I just hope it's still there for me in a few years.