ARF and Min Annual Class S PRSI Amount

[Giggs11]

I see the self employed PRSI rate has gone to 4.1% from 1st Oct
https://www.citizensinformation.ie/...re-system/social-insurance-prsi/class-s-prsi/

I see also


How does this sit with the ARF annual drawdown of €5,000 or over giving you 52 Class S contributions
ie even if you drawdown €10,000 annually, you pay €410 in PRSI (since Oct) - short of the €650 minimum.

In the 2 years since retirement, I have drawn down more than €5,000, but have not reached the min PRSI of €500 annually (pre Oct)
In my PRSI statement on mywelfare, I was awarded 52 Class S's for each year without reaching the minimum

Anyone able to clarify?

 

[ClubMan]

It also says this...

If you have been told by an Inspector of Taxes that you do not need to make a tax return, but you earn more than €5,000 in a year, you pay a flat rate contribution of €310 to the Department of Social Protection.

I don't know if "tax return" here means a self-assessed "Form 11" return via ROS?

 

[S class]

The rules for class S Prsi on ARFs are different to the normal rules for class S from self employment earned or enearned income.

In the case of self employment income the Prsi is paid under the self assessment system.

In the case of ARFs the Prsi is deducted under the PAYE system.

What this means is that for any ARF income there will be a deduction at source for class S Prsi.

Class S Prsi is only deducted from self employment income when earnings reach 5000 euro and the minimum payment then applies.

I haven't seen any reference to the minimum level of ARF drawdowns to qualify for the Contributory pension changing from the current level of 5000 euro.

 

[Giggs11]

OK - Thank you S class for the re-assurance.
I should be able to get a small contributory pension!