Proprietary director and USC of 3% on earnings over €100000

[emeralds]

I am trying to determine if a person who is a proprietary director is considered self-employed for the purposes of the extra 3% Universal Social Charge for those earning over €100,000? Can anyone enlighten me please?

 

[mandelbrot]

Well I haven't checked the relevant legislation, but the ROS offline application Form 11 doesn't calculate the USC surcharge on income from proprietary directorships in excess of 100k, but it does calculate it on Trade income...

So I'd be inclined to say no, it doesn't apply to income from proprietary directorships (which I actually find a bit strange, and isn't the answer I expected to find TBH!)

 

[smeharg]

Checked the legislation.

I'm also surprised to learn that proprietary directors aren't liable to the 10% rate.

Another reason to incorporate!

 

[emeralds]

Ok..So they are liable (it would appear) for the 7% only? Thanks for that..(The person concerned does receive a monthly salary from which PAYE/PRSI/USC is deducted and completes a Form 11 every October to claim Med1 expenses and the tax relief on charity donations)...