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

[Bronte]

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.

The state shouldn't be making it harder for people. Particularly older people who should be helped. Revenue should make it automatic that the 'button' is ticked once you drawdown the state pension instead of making everybody that it applies to tick a box. It is an effort, because you have to go online and figure it out. That is not always easy. Revenue can make it easy.

 

[Robovac rider]

Being Exempt from PRSI and being on a Zero Rated PRSI Class are two different things.

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.

This is very bad wording as pointed out by @Towger

People in receipt of the COAP or over age 70 are not exempt from Prsi. They are zero rated. They are still in the PRSI system.

If they have unearned income, occupational pension income or an ARF they are subject to class M. If they are in PAYE employment they are subject to class J.

If they check their employment or pensions pay slips they will see that the payslip clearly states that they are not Prsi exempt.

Ticking the form 11 box that they are Prsi exempt is not representing their actual position.

They are basically required to falsify their form 11 to avoid being denied their right to be zero rated for Prsi.

 

[Brendan Burgess]

Particularly older people who should be helped.

Thank you for your concern Bronte!

 

[Bronte]

Thank you for your concern Bronte!

You've a whole website to help you ! Revenue have vast resources, they could easily sort this out by linking the non payment of PRSI to the box where you receive the OAP. Instead many people will not even realise, or when they do realise will be out of time to claim back. Or will have difficulity figuring out how to claim back overpayment of PRSI.

Incidentally, the lady in the article is able to claim back, as she's still in time, I'm unsure if the revenue 4 year claim back rule applies only to tax, does it also apply to PRSI (which is not a tax).

 

[ClubMan]

I'm unsure if the revenue 4 year claim back rule applies only to tax, does it also apply to PRSI (which is not a tax).

https://www.gov.ie/en/department-of-social-protection/publications/operational-guidelines-prsi-prsi-refunds-section/

Since 1 January 2010, an application for a PRSI refund must be made within four years of the last day of the contribution year in respect of which the contributions concerned were paid.

 

[Bronte]

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.

I missed this post. So that's why it's a J rate PRSI (which is zero).

If they have unearned income, occupational pension income or an ARF they are subject to class M. If they are in PAYE employment they are subject to class J.

And for rental income it's J?

Based on Towger and your post is this incorrect in the article:

Exemption​

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.

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.

That says 'exemption'.

 

[Robovac rider]

And for rental income it's J?

Rental is a form of unearned self employment income.

People who are not zero rated would pay class S or class K on rental income.

People who are zero rated are class M on rental income.

 

[Robovac rider]

That says 'exemption'.

'Exempt' is the wrong word.
'Zero rated' is the correct wording.

There should be another box in form 11 to tick if a person is zero rated for Prsi. A COAP claimer or a person over 70 could tick this box and state this reason for being zero rated.

Or better and fairer, form 11 should be prepopulated for these people.

 

[Towger]

DSP have (very reluctantly) agreed that 'Exempt' is the wrong wording in the their documentation. I have been told they are looking at changing it, but nothing seems to be happening. People who are Exempt from PRSI are totally out of the Irish welfare system. Most commonly they have a A1 Certificate/Portable Document and are paying social security in another country.

 

[Nordkapp]

The state shouldn't be making it harder for people. Particularly older people who should be helped

I raised this aspect at the over 65’s Revenue briefing in February, an annual event which I would encourage anyone over 60 to attend.
I raised issues with the complexity of completing an annual tax return as a retiree over that return as an employee. I used the example of my wife’s pension, ARF, part time job’s where 5 sections of the return are required to be completed. A retiree should have less paperwork to complete not more.
Revenue appear oblivious to the issues and it needs to be raised with age action as a concern and for them to press Revenue to simplify returns for retirees.
The DSP were also in attendance so you can kill two birds with one stone.

 

[ClubMan]

The full self assessed tax return is overly complicated for many people regardless of age and they surely could create a simplified version for the more common simple cases that omits most of the irrelevant but confusing stuff.