Thanks a lot @S class.If over 5000 euro per year Class S
If less Class K
My query is explicitly about someone with no income other than rental income.Colleague is in receipt of Dept Ed pension. Also has rental income. I would have thought that this was S but because in receipt of Dept Pension, the payments are classed as K, which gives NIL benefit!
Other people reads these threads as well as the person who posts the original question. Ravima's post is a worthwhile contribution.My query is explicitly about someone with no income other than rental income.
Except a post above it by S Class specifically deals with this already.Other people reads these threads as well as the person who posts the original question. Ravima's post is a worthwhile contribution.
if the individual has other income their rental income will be liable to Class K.
Anybody in this situation could benefit from Class S Prsi on their rental income if they also have an ARF. If they are in receipt of ARF drawdowns in any year, then their rental income for that year will be Class S (provided that the combination of ARF + rental income is at least 5000 euro). This is a very good reason for these people to preplan before retirement by making AVCs. A very small ARF would suffice, it would not need to be over 5000 euro per year. This only applies up to age 66.Colleague is in receipt of Dept Ed pension. Also has rental income. I would have thought that this was S but because in receipt of Dept Pension, the payments are classed as K, which gives NIL benefit!
Are you sure about that?. A very small ARF would suffice, it would not need to be over 5000 euro per year.
See the conclusion section of the quoted Zurich document as below...
I don't think that the 500 euro minimum is actually applied. I my case I get 52 Class S contributions from an ARF of 7000 euro per year having only paid 4% prsi on the 7000 euro. A pensioner with an ARF of 5000 euro per year would be very irate if they received a bill from Social Protection for the extra 300 euro prsi not collected from their monthly drawdowns at the end
I don't think that the 500 euro minimum is actually applied.
I think this is one reason why they don’t enforce it.A pensioner with an ARF of 5000 euro per year would be very irate if they received a bill from Social Protection for the extra 300 euro prsi not collected from their monthly drawdowns at the end of the year. Especially so if they already had their full 40 years
Would it not be collected automatically by Revenue when an S class contributor submits a tax return?I think this is one reason why they don’t enforce it.
The number of people paying less than €500 Class S PRSI is likely to be small.
The cost of enforcing this may not be worth the administrative cost and they know it’s a complicated rule that most people aren’t aware of.