Rental income only - what PRSI class applies?

[Right Winger]

A pensioner with an ARF is in the paye tax system and the prsi is collected monthly at source at 4%. They would not be registered for income tax and would not be making a tax return.

Fair point. I didn't think of that.

 

[Marsupial]

Would it not be collected automatically by Revenue when an S class contributor submits a tax return?

Amusingly, I once tried to pay it when filing my Form 11 through ROS. The system cheerfully took my money, but didn't tell anyone in Social Welfare about it! It took quite a while to sort that one out.

 

[Knuttell]

From next year, my sole income will be rental income in excess of 5k.
How do I trigger this Class S stamp, who do I need to contact to start process?

 

[jpd]

The € 500 will be collected when you file your tax return

 

[S class]

It's automatically taken @ 4% (minimum 500 euro) when you submit your Form 11 tax return.
The 52 class S will eventually appear in your Prsi record.
It might not appear until almost the end of the next calender year.
My 52 class S for 2022 didn't appear until the last week of December 2023.

Be extra careful not to take up any PAYE employment. All your rental class S for any particular year will convert to class K for that particular year even if you only have 1 class A paid contribution during that year.

 

[Pmc365]

Class S if your income is only rental income.

 

[Knuttell]

It's automatically taken @ 4% (minimum 500 euro) when you submit your Form 11 tax return.

Thanks, that explains the K class that appeared beside the A class in my statement.
Is the 4% calculated from rental income after deductions/expenses.
Example i have to pay 24,000 to Revenue therefore its 4% of 24,000 = 960 for this S class stamp.

 

[Pmc365]

It's automatically taken @ 4% (minimum 500 euro) when you submit your Form 11 tax return.
The 52 class S will eventually appear in your Prsi record.
It might not appear until almost the end of the next calender year.
My 52 class S for 2022 didn't appear until the last week of December 2023.

Be extra careful not to take up any PAYE employment. All your rental class S will convert to class K even if you only have 1 class A paid contribution during the year.

Surely it's only S class contributions you pay for the particular tax year which covert to class k if you take up PAYE employment during that particular tax year and historic PRSI class S contributions ( which could have been amassed during decades) remain intact as class S with all the entitlements they confer as regards contributory state pension?

 

[S class]

That's correct.

I edited my comment at #25 to avoid any confusion.

 

[S class]

Thanks, that explains the K class that appeared beside the A class in my statement.
Is the 4% calculated from rental income after deductions/expenses.
Example i have to pay 24,000 to Revenue therefore its 4% of 24,000 = 960 for this S class stamp.

The Prsi is charged on the total rental income.

 

[jpd]

I think you only pay PRSI on the Irish Rental Profit

 

[JohnMM]

QQ My wife has only K Class Stamps for a number of years when she was not working - do these count for Pension Contributions? Can they be upgraded to full contributions, if they don't?

 

[ClubMan]

QQ My wife has only K Class Stamps for a number of years when she was not working - do these count for Pension Contributions?

No (emphasis is mine):

Social insurance classes

The social welfare benefits you can get are determined by the PRSI Class you are in. An overview of social insurance classes.

www.citizensinformation.ie

Class K applies to public office holders with an income of over €5,200 a year. Public office holders with weekly income of €100 or less are recorded under Class M. Class K also applies to people who pay PRSI on unearned income. There are no social insurance payments for people insured under Class K.

PRSI Class K Rates

www.gov.ie

Class K1/9 benefits​

There are no benefits under Class K1/9

Can they be upgraded to full contributions, if they don't?

I don't think so.