Is PRSI & USC Based on Gross Or Nett Income?

E

eirman

Registered User
Messages
121
This should be a simple one.

A one man business takes in 40k
Business expenses are 10k
Therefore Net Profit before tax is 30k

Is PRSI charged on the 30k (the Reckonable income as described on welfare.ie)?

Is USC charged on the 30k or 40k ?
 
This is what confused me about PRSI

Reckonable income’ for the purposes of PRSI is profit after capital allowances but before reliefs and deductions.
The current rate of PRSI is 4%, which is charged on all reckonable income (including artist exempt income).
The current rate is in effect from 1st January 2011. Previously the PRSI rate was 3%.
 

Profit is what you have after taking off your expenses.

Then you adjust this to take account of non allowable items like depreciation. This is the tax adjusted profit.

Then you take off capital allowances.
 
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