Calculating PRSI for the self employed.

A

anaconda

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This seems like a very basic question but after 3 calls to the Department of Social protection PRSI department for the self employed in Cork I've managed to get 3 different answers.

First of all I understand the rate of PRSI to be paid but I'm trying to figure out if its on Gross or Net income. One operator said gross, one said net and one said he was fairly sure it was net....Comforting :)

Most of the information I've found online points to Net (Gross pay - allowable expenses). Another question I have is do you deduct your tax credits before you calculate PRSI contributions.

Again seem like a very simple question but cant get a definitive answer I'm 100% happy with speaks the welfare site mentions reckonable income (a term I don't fully understand) and doesn't refer to net or gross. Confussed :confused:
 
A self employed person pays PRSI on the adjusted profit after capital allowances.

So if your adjusted profit is €20,000 and capital allowances €2,000 you pay PRSI on €18,000.

Pay and Tax Credits have nothing to do with the calculation of PRSI for self employed people.

Hope that helps.
 
Thanks Joe that is clear ...I think where I was getting muddled up about gross and net but really its my income minus my business expensed and then from this figure (gross profit) I calculate my PRSI and USC. Think I was asking the wrong question.

Thanks for your help
 
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