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Self Employed

taxation

Farmers and Self-Employed Benefits.

All self-employed persons aged between 16 and 66 years of age, with reckonable income of €5,000 or more per year, are liable for compulsory insurance at Class S.
 
The vast majority of self-employed people will return their income to the Revenue Commissioners under the self assessment system. However, certain categories of self-employed will pay their PRSI through the PAYE system.

What Benefits am I entitled to as a Self-Employed person?

· Maternity Benefit
· Paternity Benefit
· Treatment Benefit
· Invalidity Pension
· Means-tested Jobseeker’s allowance
· Earned income tax credit
· Means-tested farm-assist payment
The invalidity pension, paid weekly, with possible increases for a dependent is a payment for people who cannot work because of a long-term illness or disability, and is not means tested. From December 1st, 2017, self-employed people were entitled to this long-term sick pay for the first time if they have the relevant PRSI contributions.
 
Earlier in 2017, the self-employed received access to the treatment benefit scheme, which includes free eye tests, dental examinations and contributions towards the cost of hearing aids, with additional dental and optical benefits being provided since October for both the self-employed and employees.
 
If you have further question on how to apply for any of the above, please contact head office.

 

Rates of Contributions

Standard Rate: Class S contributions are payable at 4% of reckonable income – subject to a minimum annual payment of €500.
 
Persons whose annual income is €5,000 or more, who have been deemed to have no tax liability by the Revenue Commissioners and who are subsequently excused from making annual returns by the Inspector of Taxes, are required to pay a flat rate of €300 direct to this Department (see provisions for NNL cases, outlined in Section 7).
 
When the full amount (100%) of income tax and PRSI charged has been paid, an annual compliment of 52 Class S contributions are awarded. Where less than the full amount due has been paid, no contributions are awarded.

What is excluded from reckonable income?

The following types of income are excluded from reckonable income and do not have to be taken into account when calculating the PRSI contribution:
  • capital allowances
  • any sums received by way of benefit, pensions, allowance or supplement from the Department of Employment Affairs and Social Protection
  • Infectious Diseases Maintenance Allowances or Mobility Allowances paid by the Health Service Executive
  • occupational pensions
  • any payment received by Office holders. These payments are subject to Class K.
  • income continuance payments that have been approved by Revenue and are received by a person forced to leave employment due to illness.
  • Redundancy payments, golden handshake payments and early retirement bonus.
  • certain retirement lump sums in excess of €200,000 which are subject to income tax.
  • the early encashment of certain amounts of private pensions which are subject to income tax by individuals in the public sector who had previously been self-employed.