Class S PRSI Minimum Contribution & Preliminary Tax

superrdave

Two questions:

1) Assuming I earn the largest proportion of my income in a PAYE job, subject to Class A PRSI, and a smaller amount in self-employment, subject to Class S PRSI, do I still have to pay the 253 euro minimum contribution PRSI in Class S, or does the Class A I have paid offset this?

2) In paying preliminary tax for 2011 (when doing my 2010 tax return), is the amount payable 100% of my liability for 2010, as it was in 2010 (that is, subject to Income & Health Levies, Class S PRSI at 3% and Income Tax with credits at the 2010 level), or is it 100% of my liability for 2010 as it would be under the 2011 taxation system (that is, subject to USC, Class S PRSI at 4% & Income Tax with credits at the 2011 level)?

Obviously when I get around to filing my taxes on Ros (probably in November, ho hum) it will calculate this all for me, but it would help to know now.

One other thing... in the Budget 2011 summary pdf on revenue's website, it says in relation to Rent Tax Credit:

Claimants who were not renting at 7 December 2010 and who subsequently enter into a rental agreement will not be able to claim relief.

Does this mean that if you cease to live in rented accommodation at any stage after 7 Dec 2010, you can never claim Rent Relief tax credit again?

DoMyBooks

Paying 100% of 2010's total tax liability will be cover you for preliminary tax. You don't have to worry about USC ect at that point unless you want to try pay 90% of 2011's tax bill.

fankity flank

that's not actually true DoMyBooks....if calculating prelim tax for 2011 at 100% of 2010's liability you must factor in the USC. You basically need to recalculate your 2010 liability as if there was no income levy nor health levy, whilst adding in the USC.

what i am not sure of is whether you need to factor in the increase in PRSI to 4% and also the reduction in the tax credits and standard rate band. I cannot find anything on this so i presume you only need to allow for the USC.....does anyone have any thing definitve on this?

Thanks

fankity flank

P.S. Revenue are going to add a function to ROS that will calculate this preliminary tax figure for you (based on 100% of 2010's liability)....which they say should be up and running in early July.....so i suppose this will answer my question above...