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SELF-ASSES Amount of PRSI chargeable for this period.

  • 27-05-2016 11:21am
    #1
    whytek
    Registered Users, Registered Users 2 Posts: 56 ✭✭


    (Yes, I read the forum rules, now that that's out of the way)

    Hi all!

    I'm self-employed, I am filing for 2014 and need to fill out section O of the Form 11

    Question 934 b (iv) is Amount of PRSI chargeable for this period - self.

    Now, I have no net tax liability for the period, but I did earn more than €5,000 so I have to make a minimum PRSI contribution.

    According to this document: http://www.welfare.ie/en/downloads/SW14_13.pdf (2013, but there are no changes for 2014)

    Self-employed contributors with annual self-employed income over €5,000 pay Class S PRSI at the rate of 4%, subject to a minimum payment. The minimum payment for self-employed contributors is increasing from €253 to €500.

    For those with an annual self-employed income in excess of €5,000 but who have no net liability to tax, the Class S flat rate of payment is being increased from €157 to €310.


    So I am going to pay a minimum contribution of €310 - this is also less than 4% of total earning.

    I assume I am interpreting this correctly, but I thought I'd check here for wisdom gained from experience, as this 310 as opposed to 500 minimum is not mentioned everywhere, in the guide to filing for example, it does not mention it, it just says pay 500.

    thanks!


Comments

  • #2
    Carawaystick
    Registered Users, Registered Users 2 Posts: 8,779 ✭✭✭Carawaystick


    So there's a 4% rate of tax, but if you only earn a little amount it can be up to 10%?
    and people say we've a progressive tax system here...


  • #3
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    It might be simantics but "no net liability" is slightly different to not owing any tax.

    The 2015 has a different definition. https://www.welfare.ie/en/downloads/sw14.pdf

    Not sure how it works as I've not seen anyone paying €310.

    If you are required to file a form 11 it's €500.


  • #4
    whytek
    Registered Users, Registered Users 2 Posts: 56 ✭✭whytek


    Lockedout2 wrote: »
    It might be simantics but "no net liability" is slightly different to not owing any tax.

    The 2015 has a different definition.

    Yes, I saw that "been told by a Tax Inspector that they don't need to make a return" or words to that effect on the 2015 guide, however, it's 2014 I'm filing for.

    I made a good attempt to look up "no net liabilty" on t'internet and although the great majority of web sites are US based, the consensus was that it means you have a '0' in the tax owed box.

    I also saw it defined in a PAYE type context where it means the amount owed at the end of the tax year after all the tax withheld is summed and compared to the tax owed after allowances.

    I could be forgiven for assuming any of those definitions would apply to me.

    But from what you're saying the intention (semantics aside) on the part here of revenue/welfare is to charge self-employed people a minimum of €500 and then they apply some reduced rate of €310 for a small group of people (whoever they are) who don't have to make returns.

    That's probably the why of the attempt to clarify in the 2015 document.

    Oh Bring on UBI, they shall look back on us and these times in disbelief and pity.


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