Charged prsi on savings interest.

blade1

Hi, Hoping someone could explain why I'm being charged prsi on interest I received from Trade republic.

I am doing my returns on form 11 and declared under foreign income- savings deposit.

The amount of interest I earned is €1170 and I assumed there would just be dirt of 33%.

However I seem to be getting a prsi charge of €46.80 on top of that.

I thought I qualified as a non chargeable person considering the amount that I earned.

TIA.

SureYWouldntYa

A form 11 would mean you're registered for income tax and a chargeable person

If you don't have a form 11 requirement then you can deregister from income tax, include the income under a form 12 and no additional charge will apply

blade1

https://www.boards.ie/discussion/comment/122248461#Comment_122248461

Thanks SureYWouldntYa.

That's clears it up.

I kinda need to be registered for income tax so I'll just pay it.

SureYWouldntYa

https://www.boards.ie/discussion/comment/122250184#Comment_122250184

It's unfortunately the way it falls

I've seen a case where a client earned €10 in deposit interest from his investment portfolio and it meant paying an additional €300 in PRSI as he didn't pay the minimum €500 through his employment (which was over €5k triggering the minimum €500 charge). If there was no interest he would not have been charged the additional PRSI, and if he was not IT registered then he would not have been charged it either

A chargeable person can also be surcharged 10% of their total tax liability (from all sources) for non compliance with LPT, but someone not register for IT/CGT won't be subject to the same surcharge which is incredibly unfair

tohaltuwi

So many unfair things in taxation, I’ll be so glad after next year not to be a chargeable person as I’ve just sold rental property. You never stop learning about taxation.

blade1

https://www.boards.ie/discussion/comment/122255573#Comment_122255573

Would you mind answering me one more query?

I split my head open at work in 2021 and ended up out of work for 5 months due to me not able to find a doctor that would clear me for work.

I was on disability for those 5 months.

When I was doing my tax returns for that year I got a bill €687.

When I queried revenue they said it was because my tax credits weren't adjusted while I was on disability.

I thought this would be done automatically by work or was it a fault on my part for not putting the right figures when doing my self employment returns?

I didn't earn any money from self employment and I just left the amount my tax credits automatically were on form 11.

Does that make sense?

SureYWouldntYa

https://www.boards.ie/discussion/comment/122256128#Comment_122256128

It's often done automatically by Revenue if they are notified by the DSP about someone being in receipt of taxable social welfare, but not always. I really don't know why it happens in some cases and not in others. You could have notified Revenue yourself and reduced your credits accordingly.

It would not have been up to your employer to do this nor would they have the function, they apply the tax credits and cutoff Revenue tells them to.

If your credits were adjusted you would have seen a decrease in your net pay once you went back to work, which would have been because some of your tax credits and cutoff were allocated to the social welfare income.

Your liability would be the same whether you were Form 11 or Form 12, the only difference being that for a Form 12 Revenue would likely offset the liability by reducing your tax credits in future years, they don't do this for anyone registered for Income Tax.

blade1

https://www.boards.ie/discussion/comment/122256564#Comment_122256564

Thanks yet again