Umbrella company director and PRSA

[Herbie]

I'm looking at working as a daily rate contractor in the New Year and thinking about opting for a Director Umbrella company to handle tax, VAT etc. (https://www.iconaccounting.ie/services/director-company-umbrella). I'll pay Class S PRSI. I'll be liable for both employers and employees PRSI so I'm thinking of putting some money into an existing paid up PRSA that I already have. That'll allow me to reduce my employers PRSI liability and to take advantage of the higher pension contribution limits as a company director. Is there any issue using an existing PRSA to do this having used it previously as a Class A PRSI employee?

 

[S class]

Class S Prsi @ 4.1% is paid by a self employed person.
It's not split into employers and employees contributions.

 

[LDFerguson]

Is there any issue using an existing PRSA to do this having used it previously as a Class A PRSI employee?

No. You and the umbrella can pay into your existing PRSA.

There might be arguments in favour of starting a new PRSA for the new contributions, e.g. potentially lower charges, flexibility of having a couple of pension pots at retirement etc. But if none of them apply to you then you can go ahead and use the existing one.

 

[GSheehy]

You just have to appoint the existing PRSA company as a PRSA Provider to your company. The provider/intermediary that you bought the PRSA through can do this for you.

 

[Herbie]

Thanks @LDFerguson and @GSheehy - much appreciated