Retired couple - deposit interest income will be over €5k. €10k per couple? Form 11 - rate/prsi?

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askabouttax

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Myself and my wife are retired. As deposit interest rates are rising, our deposit interest income will be over €5k this year. My undertstanding is that this places us in the "chargeable persons" Form 11 territory. However, is this €10k per couple i.e. that if under €10k we can continue to do normal PAYE returns? And, if chargeable persons, is the only extra charge above normal 33% DIRT the 4% PRSI? Finally, as we are retired, we are not paying PRSI. Does this mean the 4% would not apply, or would it be introduced if we became chargeable persons as a result of earning non PAYE income.



Thanks!
 
The exemption from PRSI is based on your age, not your employment status

if you are over 66, then there is no PRSI (for now, at least)

It is charged on an individual not on a couple - so it's € 5,000 per person

Do you need to pay 'Pay Related Social Insurance (PRSI)'?

This page outlines your 'Pay Related Social Insurance' (PRSI) requirements when self employed
www.revenue.ie www.revenue.ie
 
Ahh thanks. I think my (public service) employer might have messed up - I appear to be placed on Class M (and I'm not yet even 60).
 
Is this 5k threshold relating only to gross interest received without DIRT deduction that is assessable, i.e the 5k does not apply to deposit interest on which DIRT was already deducted by AIB etc.?

In relation to paying PRSI, 'm confused.

Citizens Information says "You only pay PRSI on your income from employment or self-employment. You do not have to pay PRSI on your pension from a former employment." ?
 
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You don't pay PRSI on pension income regardless of age (it's listed as class M which means no PRSI deducted). PRSI is still charged on other income if you're under 66.
 
thank you Ciru75, what jpd had said had got me confused. It is indeed Class M that I am on.

Separately, if anyone knows about this question:

"Is this 5k threshold relating only to gross interest received without DIRT deduction that is assessable, i.e the 5k does not apply to deposit interest on which DIRT was already deducted by AIB etc.?"
 
askabouttax said:
As deposit interest rates are rising, our deposit interest income will be over €5k this year. My undertstanding is that this places us in the "chargeable persons" Form 11 territory.
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No, deposit interest is taxed at source, and does not make you a chargeable person. It's an exemption under section 261 of the TCA.
 
RedOnion said:
No, deposit interest is taxed at source, and does not make you a chargeable person. It's an exemption under section 261 of the TCA.
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Sorry. I'm referring to deposit interest not taxed e.g.Raisin and Bunq. Which may or may not be over 5k, depending on whether deposit interest which WAS subjected to DIRT by AIB included in the 5k figure.
 
askabouttax said:
Sorry. I'm referring to deposit interest not taxed e.g.Raisin and Bunq. Which may or may not be over 5k, depending on whether deposit interest which WAS subjected to DIRT by AIB included in the 5k figure.
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Interest which is fully taxed at source is not included in calculating if you breech the 5k limit. If that's what you are asking?
 
Yes exactly thanks! So if raison etc. approach 5k rest of deposits with e.g. AIB or BOI. To avoid getting into form 11's etc. Unless really worth it. Is there somewhere official that states this? Orrely on "assessable" clearly meaning not already paid on. Thanks
 
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