I have applied and received a reply seeking further information. I am self employed, 65 since December and have had very little income due to inability to work ( as unwell and refused illness benefit in 2018) and due to lockdowns etc during covid..
They are seeking information on my business as in did I sell it, how much I received and when did I receive it.
They have indicated that my income from 2019 and 2020 was 100% from unearned income. I have rental income and yes this is true for 2019 as I was unable to work but not for 2020 or 2021. My income for 2020 is offset against expenses ( a van I had purchased prior to becoming ill in 2018).
I contacted Pension office in Sligo today as they had recently sent me a detailed record of contributions which are "S" every year since 1988. They assure me these are eligible for COAP next year so fingers crossed.
I would willingly pay for advice from someone who understands the system if anyone could make a recommendation.
I am thinking now I will not be eligible as my rental income is approx 35000.
So if anyone has clear advice on whether rental income impacts this payment if on Class S contribution I would be glad to know. Also as all of my income in 2019 is from unearned income should I just reapply from January 2022 where my 2020 income may be considered.
Thanks in advance
The following are the details of prsi K class.
PRSI Class K
Certain public office holders pay PRSI at a rate of 4% on all income,
where their income is over €5,200 a year. They should be returned at
Class K. Public office holders with weekly income of €100 or less should
be returned at Class M.
Class K also applies to the additional earned self-employed income from
a trade or profession of a modified rate contributor, for example, civil
and public servants recruited prior to 6 April 1995, and on any unearned
income they may have. This income is liable to a 4% PRSI charge.
Class K may also apply to the unearned income of employed contributors
and occupational pensioners, whether the pension arises from the
person’s own employment or the employment of their spouse or civil
partner, under pensionable age, currently 66 years, where this is the
only additional income. This means that unearned income such as rental
income, investment income, dividends and interest on deposits and
savings may be liable to a 4% PRSI charge.
For any years where your only earnings were rental income you were subject to S class on the rental income.
For any years that you had self employed income and your only other source of income was rental income then for that year your rental income was subject to class K.
If you can manage some self employed work in your 65 year then you might be able to avoid being considered as employed for your rental income as it would be classed as K rather than S class for prsi.
If you can no longer be self employed, you could get employment for 1 week at A class prsi and this would also result in your rental income being subject to K class prsi.
