If you are exempt from PRSI as a pensioner you must tick a box on Form 11

Brendan Burgess

Brendan Burgess

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Just completed my Form 11 and they charged me PRSI on my income.

I was over 66 last year so I am exempt.

I discovered that although the Form 11 is prepopulated with my OAP, I must tick a box to claim it.

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You are not exempt from PRSI because you receive a pension - you are exempt because of your age
 
jpd said:
You are not exempt from PRSI because you receive a pension - you are exempt because of your age
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I don't think that that's quite correct.

Pay Related Social Insurance (PRSI) and Universal Social Charge (USC)

This section explains Pay Related Social Insurance (PRSI) and Universal Social Charge (USC)
www.revenue.ie www.revenue.ie
You will continue to be liable for PRSI until you:
  • are awarded the State Pension (Contributory)
  • or
  • reach age 70.
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If @Brendan Burgess is 66+ and in receipt of the OACP then he's exempt. (I'm pretty sure that he's not over 70 so that's irrelevant here).

I presume that this means the state Old Age Contributory Pension.
Brendan Burgess said:
Form 11 is prepopulated with my OAP
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I found the rules so hard to understand that I turned to AI for a summary, which I think is correct.


Important PRSI Exemption Rules for Pensioners
Keep in mind how Ireland's age rules apply to self-assessment income (like rental or trading income): [1]

If you were born before January 1, 1958 (Aged 66+ by Jan 2024): You are completely exempt from PRSI on all income, regardless of whether you are working or drawing a pension. [1, 2]

If you were born on or after January 1, 1958 (Aged 66–70): Under the current flexible pension rules, the standard PRSI exemption age is 70. However, you become exempt early if you have been awarded the State Pension (Contributory). [1, 2]
 
Brendan Burgess said:
If you were born before January 1, 1958 (Aged 66+ by Jan 2024): You are completely exempt from PRSI on all income, regardless of whether you are working or drawing a pension. [1, 2]
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That's not what Revenue say in the bit that I quoted above.
According to that you're only exempt if you're:
  • Aged 66+ and drawing the OACP, or
  • Aged 70+
 
A person born before 1st January 1958 is not allowed to defer their COAP, therefore they are automatically exempt from payment of Prsi after age 66.

This was the rule before the facility to defer the COAP was introduced and this still applies to this category of people.
 
ClubMan said:
Even if they don't qualify for the contributory pension?
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Yes.

Some people will be winners and others have lost out.

A person born before 1st January 1958 who had 519 Prsi contributions at age 66 got no COAP. Being automatically exempt from paying Prsi after age 66 is no consolation for this person. This person is a loser.

A person born after 1st January 1958 who has 519 Prsi contributions at age 66 can defer for 1 week and be awarded a partial COAP. This person is a winner.

A person born after 1st January 1958 who cannot reach 520 Prsi contributions before age 70 is a loser. This person remains liable to pay Prsi up to age 70 but will never qualify for any COAP.

Some pre 95 public sector workers could find themselves in this position. They could be required to pay Prsi up to age 70.

If they have unearned income they will pay Prsi on this.
Because they will be in receipt of an occupational pension liable to class M Prsi, they will pay class K on their unearned income.

Class K is not Reckonable for the COAP.

Pre 95 public sector workers and Prsi until age 70.

This category of workers may not be able to qualify for the contributory pension at age 66. If they don't qualify they will remain liable to Prsi on rental and investment income up to age 70. They will pay class K Prsi on their unearned income. This is charged at 4% and gives no reckonable...
www.askaboutmoney.com
 
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Seems sensible. Such benefits shouldn't be automatic. Ticking a box on a form does not require much effort.

Pensioners benefits are far too high and should be significantly reduced. I see no reason to support the lifestyles of people just because they have happened to have reached a certain age. We all pay heavily to support them.

Reaching an arbitrary age is not an achievement deserving of any reward from the state. Many pensioners have already been far too well compensated. If anything, they need to pay more into the burden. I have no interest in supporting their lifestyles.

We would do well to remember that a significant % of that generation have been involved in criminality, child abuse, white collar crime - as perpetrators or facilitators.

Those conspiracies and crimes and failings reduced Irish combined GNP by, at a very conservative estimate, €300 billion. Why should the younger generations bail out those who committed these failings.

I don't agree with a bailout for them. The OAP is essentially a bailout and state subsidy for individuals who managed to reach a certain age. As I said, this is entirely arbitrary and reaching an arbitrary age is not an achievement deserving of state largess.

If we really must have an old age pension, then it should be means-tested, as with other social welfare. Those who can prove legitimate need can avail of a modest payment. But they must await their turn, and I see no reason why they shouldn't the last to benefit.

No doubt, the next time I check this site, my post will have been deleted on spurious grounds. And if that happens, it will help to prove my point, if anything.
 
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walktothewater said:
Seems sensible. Such benefits shouldn't be automatic. Ticking a box on a form does not require much effort.

Pensioners benefits are far too high and should be significantly reduced. I see no reason to support the lifestyles of people just because they have happened to have reached a certain age. We all pay heavily to support them.

Reaching an arbitrary age is not an achievement deserving of any reward from the state. Many pensioners have already been far too well compensated. If anything, they need to pay more into the burden. I have no interest in supporting their lifestyles.
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Cén aois thú?
 
Brendan Burgess said:
The key point of my initial post was that despite the fact that you are of the right age and that you are receiving the COAP, you must tick the box to claim exemption from PRSI.
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Yes, form 11 should be updated to automatically not charge Prsi to COAP claimers and over 70s.

There is also an anomaly in Prsi contribution statements where COAP claimers who have had Prsi deductions paid in error will have class A contributions shown on their statement.

But these contributions are not allowed to further boost their COAP.
 
walktothewater said:
We would do well to remember that a significant % of that generation have been involved in criminality, child abuse, white collar crime - as perpetrators or facilitators.

Those conspiracies and crimes and failings reduced Irish combined GNP by, at a very conservative estimate, €300 billion. Why should the younger generations bail out those who committed these failings.

I don't agree with a bailout for them. The OAP is essentially a bailout and state subsidy for individuals who managed to reach a certain age. As I said, this is entirely arbitrary and reaching an arbitrary age is not an achievement deserving of state largess.
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You are confusing OAP and COAP.

COAP is only awarded to those who have worked and paid their Prsi contributions. These are the generation who worked hard all their lives to build up the infrastructure that your generation now enjoys. These people are not criminals or child abusers.

Non contributory OAP is means tested.

People in receipt of non contributory OAP remain liable to pay Prsi up to age 70. The majority of these people are also not criminals or child abusers.
 
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Being Exempt from PRSI and being on a Zero Rated PRSI Class are two different things.
DSP are looking at updating the wording. It is causing them problems with employers ticking 'PRSI Exempt' for employees, leading them to have no Occupational Injuries Benefit.
 
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getting_on said:
There's this article : https://www.irishtimes.com/your-mon...ng-charged-prsi-if-i-am-on-the-state-pension/
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This is very important for anyone earning not just the state pension, but other income such as rental income.

It doesn’t matter whether you were doing a part-time job or, as you are, receiving rental income. Once you are on the State pension, you are exempt from PRSI.

I got in touch with the Department of Social Protection and its position was quite clear.

“This person states that they are in receipt of rental income and are in the process of completing their 2025 tax returns. The information given suggests that the reader has been in receipt of the State pension (Contributory) since 2024. Given these details, once the reader finalises their 2025 tax return, PRSI will not be charged on their income.”

So, regardless of what how your Form 11 – the tax return for or people who are self-employed or in receipt of unearned income in excess of €5,000 – says, you are not due to pay PRSI.

I am not sure why your form would be prepopulated with an obligation to pay PRSI when Revenue knows your age and should know from your 2024 return that you are in receipt of a State pension. I can only assume whatever computer programme prepopulates the Revenue Form 11s has not been programmed to take account of that nuance.

However, there is a box in the personal details section of your online Form 11 that you can tick to indicate you are entitled to an exemption from PRSI. You’ll need to state why. Putting in that you are in receipt of the State pension should see the form reset itself so that it no longer seeks to charge you in the section that calculates the taxes you owe.
 
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