How do you pay PRSI?

[Slash]

Sounds like a stupid question, I know.

During 2005, I earned income partly as PAYE worker and partly self-employed consultant. I submitted a tax return for the year and got back the Notice of Assessment the other day. All's well with the Income Tax, but it now turns out that I have only paid PRSI on the part of the year when I was subject to PAYE/PRSI, and no PRSI has been paid on the part of the year when I was self-employed.

Since I want to ensure the PRSI is paid in full, what do I do now?

 

[bazermc]

Self employed income subject to PRSI is collected along with the income tax due on that income. i.e. it should appear on your notice of assessment issued from revenue on filing your return.

It could be due to the fact that PRSI on self employed income only kicks in when your taxable income exceeds €3,175. If your income exceeds this figure it is quite likely the notice of assessment it wrong and you will need to ring revenue and get them to amend it. Do you have an accoutant how prepared the tax return, what did he or she say?

 

[Slash]

Self employed income subject to PRSI is collected along with the income tax due on that income. i.e. it should appear on your notice of assessment issued from revenue on filing your return.

That's exactly what I had expected, but there is no charge for the PRSI on the Notice of Assessment. There is a charge of 2% for the Health Levy.

I did the Return myself.

I shall ring Revenue tomorrow.

Thanks.

 

[shane55]

It could be that revenue thought your income from self employed sources was investment income rather than trading income in which case it is only liable to the 2% health contribution. It appears that if a person with investment income and no trading income has had prsi deducted from paye income they are only liable to the health contribution on investment income.
The following examples from the revenue guide to completing tax returns illustrate:​

"Examples to show the liability to PRSI and Health Contributions where an individual has different sources of income are set out below.​

Where an individual has employment income that has already suffered PRSI at source, the liability to the Self-Employed (class S) PRSI depends on the type of income the person has. ​

The following examples will help show the liability to PRSI where an individual has different sources of income.​

Example 1
Individual with employment income and no trading income:
Employment income £30,000
Investment income £50,000
PRSI class S liability nil
Health Contribution £50,000 @ 2%​

Example 2
Individual with employment income, investment income, and trading income:
Employment income £30,000
Investment income £50,000
Trading income £20,000
PRSI class S liability £70,000 @ 3%
Health Contribution £70,000 @ 2%​

Example 3
Individual with employment and trading income:
Employment income £30,000
Trading income £22,000
PRSI Class S liability £22,000 @ 3%
Health Contribution £22,000 @ 2%​

Example 4
Individual with investment income:
Investment Income £50,000
PRSI Class S liability £50,000 @ 3%
Health Contribution £50,000 @ 2%​

Example 5
Individual with trading and investment income:
Trading income £22,000
Investment income £50,000
PRSI Class S liability £72,000 @ 3%
Health Contribution £72,000 @ 2%​

Example 6
Individual with trading income:
Trading Income £22,000
PRSI Class S liability £22,000 @ 3%
Health Contribution £22,000 @ 2%​

 

[Slash]

It could be that revenue thought your income from self employed sources was investment income rather than trading income in which case it is only liable to the 2% health contribution.

That's what happened.

I rang Revenue. They put some of the income down as Case D instead of Case E (I must have put it in the wrong Box). Anyway, they are going to amend it and apply the PRSI and Health Levy to the full amount, so I'll have a bit more to pay, but at least I'll be fully compliant, which is the important thing.

Thank you to everyone who replied.