Class S PRSI Fees and Commissions

cooleyirl

cooleyirl

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I have been self employed since last year. The background is that until March 2024 I was working for the public service. I took a career break and started working for myself. I returned briefly to the public service a few months ago to process out - i.e leave it. During this few weeks I was paid.

My self employed income derives from fees paid to me from an online company.

In January when I did my tax return for 2024 I declared my self employed income in the 'Irish Other Income' on the Form 11 as Fees and Commissions. I thought this was the right place and that I would be paying Class S PRSI as a result. When I checked this on My Welfare contributions statement it was listed as Class K which is not reckonable for state pension contributory.

I called Revenue about it and they said because I had paid some Class A PRSI last year (when a public servant) the Irish other income was automatically converted to Class K. They amended the Form 11 for me and put the income down elsewhere and I got my 52 weeks class S PRSI for 2024.

What I want to be sure is that when I do my tax return for 2025 that I don't make this mistake again. As I have 4 weeks Class A PRSI for 2025 I assume that if I put my self employed Fees income down in the Other Income box it will again be recorded as Class K.

Is it the case that if I don't have PAYE income that 'Other Income' on the Form 11 specifically Fees and Commissions is reckonable for the State Pension Contributory?

Any advice or information would be appreciated so I can get this done right.
 
The rule that changes Prsi to class K is applied to unearned income when you also have class A employment.

If you had no class A employment you would get class S on your unearned income provided in is minimum 5k.

Are your fees and commissions unearned ?

If they are earned self employment you probably need to set up a new self employment on your tax return.

If Revenue did this for you last year, the new self employment will probably be included in your 2025 tax form.

If the fees and commissions are unearned you will lose out if you have less than 52 class A for the year.
 
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Thank you for your reply. In fact last year I had only 12 weeks Class A before I started my career break so was a bit surprised when I read in my welfare contribution statement that my other work was Class K. Revenue moved it into the self employment box. It was definitely earned income.

Going forward should I declare this income as Other Income > Fees and Commissions or keep declaring it in the Self Employment section? It is definitely earned - I work hard every day for it.
 
Thank you. It's a difficult thing to navigate as when you fill out the form 11 there is no indication what class of PRSI is being assigned. Not very user friendly.

As things move forward I may form a one person limited company and hire an accountancy firm to manage this.
 
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