Minimum Self Employed & Voluntary PRSI Contributions to increase from October 2024

Will this apply to the 2024 tax year or only from 2025?

€650 is still very good value for the pension benefits.
 
Dr Strangelove said:
You think developments in average earnings are of no relevance to setting what are effectively taxes on earnings?
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I don’t see how it’s of any relevance to the minimum contribution level.

Bear in mind that the self-employed pay PRSI at the higher of 4.1% of their profits or €650.

There is no similar minimum contribution level for employees.
 
Sarenco said:
I’m afraid I don’t know.

Seems a bit odd that the various PRSI changes are not taking effect at the start of the next tax year.

It’s a big increase for a self-employed person with a relatively low income.
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Yep; it's going to hurt my youngster, a freelance musician who struggles to make ends meet as it is.

I've already told him to file his Form 11 for 2023 before 1 October next to avoid that extra €150 that the bank of mum and dad would otherwise have to provide.
 
Sarenco said:
I don’t see how it’s of any relevance to the minimum contribution level.
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Do you think it should be frozen forever no matter what ever happens to prices and wages?

Otherwise I think it would be less regressive if the minimum income for PRSI was increased proportionately from €5,000 to €6,500. But the press release is silent on this.
 
Marsupial said:
Yep; it's going to hurt my youngster, a freelance musician who struggles to make ends meet as it is.

I've already told him to file his Form 11 for 2023 before 1 October next to avoid that extra €150 that the bank of mum and dad would otherwise have to provide.
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He won't save money by filing early, and it won't cost him extra if he files after 1 October.
 
Sarenco said:
Interesting. Could you expand on your logic here?
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What is there to expand upon?

Form 11 tax returns have nothing to do with voluntary PRSI contributions.

And the Form 11 returns due by 31 October or 14 November refer to 2023.

It's not possible to file a 2024 Form 11 until at least 1 January 2025.
 
T McGibney said:
What is there to expand upon?

Form 11 tax returns have nothing to do with voluntary PRSI contributions.

And the Form 11 returns due by 31 October or 14 November refer to 2023.

It's not possible to file a 2024 Form 11 until at least 1 January 2025.
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When one files one's Form 11 through ROS, Revenue's software calculates the amount of PRSI payable.

The Government's Press Release states that "The minimum contribution for self-employed people and voluntary contributors (formerly self-employed) will increase by €150 to €650 from 1 October 2024."

If this is correct then, presumably, Revenue's software - being aware of the Government's decision - will calculate the minimum PRSI contribution due on any Form 11 filed after that date as being €650. On that basis, I'm advising him to file before 1 October.
 
Marsupial said:
When one files one's Form 11 through ROS, Revenue's software calculates the amount of PRSI payable.

The Government's Press Release states that "The minimum contribution for self-employed people and voluntary contributors (formerly self-employed) will increase by €150 to €650 from 1 October 2024."

If this is correct then, presumably, Revenue's software - being aware of the Government's decision - will calculate the minimum PRSI contribution due as being €650. On that basis, I'm advising him to file before 1 October.
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No, you're missing three obvious points.

1. Form 11 returns have nothing to do with voluntary PRSI contributions, which aren't even collected by Revenue.

2. Revenue in any event can't discriminate between taxpayers who file a return respectively before and after a random date both ahead of a filing deadline.

3. There is no indication that the proposed increase applies retrospectively to the year 2023.
 
Sarenco said:
I don’t really see the need for any minimum PRSI contribution amount - there isn’t one for employees.
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I imagine that it is because self-employed PRSI contributions count for a whole year of PRSI credits. If there was no minimum, you could say that you were self-employed for a whole year, even if you only actually did one day of work, and get a full year of credits. Employees at least have to do a little bit of work each week to achieve something similar.
 
T McGibney said:
1. Form 11 returns have nothing to do with voluntary PRSI contributions, which aren't even collected by Revenue.
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While I agree with you that this should not affect people filing their Form 11 for 2023 after 1 October, I do want to clarify that I think the change does not just apply to voluntary contributions - it also applies to any self-employed person earning less than a certain amount, in which case it will be collected by Revenue based on your Form 11 return.
 
T McGibney said:
No, you're missing three obvious points.

1. Form 11 returns have nothing to do with voluntary PRSI contributions, which aren't even collected by Revenue.

2. Revenue in any event can't discriminate between taxpayers who file a return respectively before and after a random date both ahead of a filing deadline.

3. There is no indication that the proposed increase applies retrospectively to the year 2023.
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I'm not really interested in participating in an obviously pointless argument. Filing the Form 11 before 1 October seems to me to be the sensible action and that's what will be happing.
 
basilbrush said:
While I agree with you that this should not affect people filing their Form 11 for 2023 after 1 October, I do want to clarify that I think the change does not just apply to voluntary contributions - it also applies to any self-employed person earning less than a certain amount, in which case it will be collected by Revenue based on your Form 11 return.
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Not for 2023 it won't. Why do you say "should not" instead of "will not"?

The change applies from a date in 2024.
 
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