# PRSI on State Savings - has this been clarified?



## The Ghoul (18 Jan 2014)

There has been plenty of discussion on AAM about PAYE workers needing to file Form 11 tax returns and pay PRSI if they earn >3174 euros per year in deposit interest. Is there any update on how exactly the various State Savings products are treated? There are various products and some are treated differently than others when it comes to DIRT so perhaps there will be a difference when it comes to PRSI also. 

eg

-Prize bonds, no interest but rather prizes, not subject to DIRT

-Solidarity bonds that accrue a bonus which is not subject to DIRT and pay yearly interest which is subject to DIRT

-Solidarity bonds that accrue a bonus which is not subject to DIRT and pay no yearly interest 

-Savings certs and bonds that accrue interest which is not subject to DIRT

As a PAYE worker with most of my savings in the above products I'm particularly interested in this. 

If I want to write to sombody to seek clarificaton should I write to the NTMA/An Post, Social Welfare or Revenue?


----------



## Lightning (18 Jan 2014)

We need to wait for the Finance Act to be published to get further classification. I don't think we will get that clarification until the act is published. 



The Ghoul said:


> There has been plenty of discussion on AAM about PAYE workers needing to file Form 11 tax returns and pay PRSI if they earn >3174 euros per year in deposit interest.



You need to earn at least 3,174 EUR per year in unearned income to be eligible to pay PRSI. Unearned income includes more than just deposit interest.


----------



## theresa1 (18 Jan 2014)

Any idea CiaranT when it will be published? I don't want going over the €3,174 but again like The Ghoul nearly all my money is in state savings products.

I'm even thinking shifting some of the savings into Prize bonds to keep below €3,174.


----------



## The Ghoul (18 Jan 2014)

CiaranT said:


> You need to earn at least 3,174 EUR per year in unearned income to be eligible to pay PRSI. Unearned income includes more than just deposit interest.


True, Ciaran. I was thinking of my own situation i.e. a PAYE worker with deposit interest/State Savings and no other earned or unearned income.


----------



## Dermot (18 Jan 2014)

In relation to the 3,174 euro in unearned income to be eligible to pay PRSI is this doubled for a joint account


----------



## The Ghoul (18 Jan 2014)

theresa1 said:


> Any idea CiaranT when it will be published? I don't want going over the €3,174 but again like The Ghoul nearly all my money is in state savings products.
> 
> I'm even thinking shifting some of the savings into Prize bonds to keep below €3,174.


I have 100k in prize bonds, for the first 3 months they did well but I've won nothing since 13th December, no 50 euro wins, nothing. 

This is actually what prompted this thread, I'm considering whether to leave this money in PBs or move it into something else eg the 10 year SB. If moving the money out of PBs caused me to become a "chargeable person" then that might influence my decision.

I don't mind paying PRSI on deposit interest (would suit if it was taken at source) but I want to avoid becoming a chargeable person if possible.

It's quite possible that there will be yet another cut in the State Savings rates after the recent Moody's upgrade of Irish government debt - so hopefully the Finance Act clarifying the situation is published soon.


----------



## llgon (21 Jan 2014)

You might be right about another NTMA rate cut, however with three rate cuts in just over a year while Moody's gave a junk rating it seems pressure from the banks has a bigger influence on State Savings rates than the government's credit rating.


----------



## Daddy (7 Mar 2014)

Has the Finance Act been published and if so what was the outcome of the opening posters question.


----------

