Help with Form 11 and PRSA

AnonEngineer

AnonEngineer

New Member
Messages
3
Hi,

Apologies for what is probably a very basic question. I'm recently-ish self-employed and struggling to understand "accountant speak". A family friend has been helping me out with understanding how to fill out the form 11. That was going fine, but at the end of last year I started paying into a PRSA, and now I need to record it. He left me with one note on this topic and then went AWOL, not responding to emails. His advice seems incorrect and i'm not sure what to do. If anyone could help clear things up i'd appreciate it.

To make things easier lets add some fake numbers. Lets assume I took in 105k, 5k expenses, 1k into PRSA (over multiple monthly debits)


Question 1:
Given similar numbers I would normally record "drawings" as 100k (105 - 5). The ROS note says to "net pension contributions". So I would have assumed I now enter 99k ((105 - 5) - 1). The only note I have from the family friend was "don't net pension from drawings". Which conflicts with the message. So what number do I type in below, please explain why if I do not "net pension contributions"

ros-drawings.png



Question 2:
After this page there are multiple pages + sections related to pension. One of them is labeled PRSA with just an input, where as others require entering a lot of information about the pension, employer, employee, calculating USC or taxable income, etc. Do I simply enter 1k into the PRSA and nothing else? or do I still need to fill in some of these other sections, and if so, any advice or explanations on the fields i've to enter would be appreciated

ros-prsa.png







ros-pension-full.png






ros-pension-extra-1.png





ros-pension-extra-2.png
 
I think you can ignore what your so called friend said, you can only claim relief on the 1k paid. Aside from that your assumption that drawings = income minus expenses could be wildly inaccurate. It's sometimes higher or lower. And what about your fixed assets such as motor vehicle and equipment? Your balance sheet will reflect these things as well as your opening and closing capital account which has to be reconciled. A steep learning curve lies ahead, it won't be easy, but the best of luck.
 
Altlock said:
I think you can ignore what your so called friend said, you can only claim relief on the 1k paid. Aside from that your assumption that drawings = income minus expenses could be wildly inaccurate. It's sometimes higher or lower. And what about your fixed assets such as motor vehicle and equipment? Your balance sheet will reflect these things as well as your opening and closing capital account which has to be reconciled. A steep learning curve lies ahead, it won't be easy, but the best of luck.
Click to expand...

"you can only claim relief on the 1k paid"
So the process is to type in 99k in drawings? Where do I record this as PRSA contributions?

"drawings = income minus expenses could be wildly inaccurate"
I've done this section before several times and feel like I have a grasp of this. I understand the differences around cost of sales, travel expenses, business expenses, etc. I was just trying to simplify all of that section as its not relevant to what i'm asking. I know how to record everything else, and have done so 2 years previous. I just need to know how to bring the PRSA contributions into this. Any clear guidance would be appreciated
 
AnonEngineer said:
I just need to know how to bring the PRSA contributions into this. Any clear guidance would be appreciated
Click to expand...
Drawings figure (your total personal expenditure for the year)
minus
Tax paid
minus
PRSA contributions total paid in the year.

(The figure you specify doesn't matter that much in the overall scheme of things and doesn't affect your tax liability position.)
 
T McGibney said:
Drawings figure (your total personal expenditure for the year)
minus
Tax paid
minus
PRSA contributions total paid in the year.

(The figure you specify doesn't matter that much in the overall scheme of things and doesn't affect your tax liability position.)
Click to expand...

Ok so I type in 99k into drawings. Then how do I get the tax benefits on these contributions? As I posted above, theres 2 pages of pension forms, much of the language is quite vague to me. Is it just typing 1k into the PRSA field and ignore all the others?
 
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