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Self employed - Tax and contribution

  • 13-12-2014 7:36pm
    #1
    selfi
    Registered Users, Registered Users 2 Posts: 15 ✭


    Hello,

    As I am totally new to all of this taxation I'm seeking an advice. Am I correct by interpreting what's on welfare.ie

    "All self-employed people aged between 16 years and 66 with earnings more than a specified amount (currently €5,000 per annum) must pay PRSI"

    That amount is net of all my invoices? Or net of my invoices minus expenses like phone bills etc.?


Comments

  • #2
    NewApproach
    Registered Users, Registered Users 2 Posts: 2,191 ✭✭✭NewApproach


    Its based on your taxable profit, so after deduction of phone expenses, etc.

    The minimum contribution is €500, so if profits are <€5k, no PRSI, between €5k and €12.5k its €500, or 4% of everything if >€12.5k.


  • #3
    mickdw
    Registered Users, Registered Users 2 Posts: 23,688 ✭✭✭✭mickdw


    NewApproach wrote: »
    Its based on your taxable profit, so after deduction of phone expenses, etc.

    The minimum contribution is €500, so if profits are <€5k, no PRSI, between €5k and €12.5k its €500, or 4% of everything if >€12.5k.

    There is a sneaky little snag involved here though. Valid capital expenses that are tax deductible and reduce your taxable income are not deducted when calculating prsi threshold so you could infact have even less than 5000 taxable income and still have to pay 500 prsi.


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