I’m afraid I don’t know.Will this apply to the 2024 tax year or only from 2025?
Agree. Revenue and DSP operating in siloes as usual.Seems a bit odd that the various PRSI changes are not taking effect at the start of the next tax year.
I think it’s about in line with average wage growth since 2014.It’s a big increase for a self-employed person with a relatively low income.
Well, it’s a big increase for a self-employed person with profits of less than €12,500.I think it’s about in line with average wage growth since 2014.
You think developments in average earnings are of no relevance to setting what are effectively taxes on earnings?I don’t see how average wage growth is of any relevance.
I don’t see how it’s of any relevance to the minimum contribution level.You think developments in average earnings are of no relevance to setting what are effectively taxes on earnings?
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.
Do you think it should be frozen forever no matter what ever happens to prices and wages?I don’t see how it’s of any relevance to the minimum contribution level.
I don’t really see the need for any minimum PRSI contribution amount - there isn’t one for employees.Do you think it should be frozen forever no matter what ever happens to prices and wages?
He won't save money by filing early, and it won't cost him extra if he files after 1 October.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.
Interesting. Could you expand on your logic here?He won't save money by filing early, and it won't cost him extra if he files after 1 October.
What is there to expand upon?Interesting. Could you expand on your logic here?
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.
No, you're missing three obvious points.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.
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.I don’t really see the need for any minimum PRSI contribution amount - there isn’t one for employees.
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.1. Form 11 returns have nothing to do with voluntary PRSI contributions, which aren't even collected by Revenue.
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.
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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