Private Health Insurance & PRSI Health Levy

If i purchase private health insurance do i still have to pay the full PRSI health levy on my pay?

Yes

As far as i know the answer depends on whether you are taxed under schedule D or Schedule E (employments)

Under schedule E, I understand that PHI should be PRSI and health levy deductable.

Under Schedule D, the reverse

PHI = Permanent Health Insurance (better known as Income Continuance or Income Protection). As an employee, PHI might be deducted from your salary by your payroll department and you'll only pay PRSI/ Health Levy on the income after deduction of PHI. If it isn't deducted from your salary you need to do a tax return after the tax year ends and claim the relevant relief yourself.

I think the original poster referred to private Health Insurance eg VHI/ BUPA/ VIVAS. Somewhat confusingly, this is not PHI! These payments don't affect either PRSI or the Health Levy calculations.

Sorry for the old thread update, but is PRSI deductible from PHI contributions. I contribute outside of my payroll and as yet havent looked for any sort of PRSI refunds?

Thanks

S.

belated update.

Any clarification to my previous query? Also as my pension contributions were outside payroll I have to chase up the PRSI refunds directly with Revenue. Can one reclaim such refunds while as a sole trader or is it just exclusively applicable to PAYE workers?

Thanks
S.

is PRSI deductible from PHI contributions

Click to expand...

If by PHI you are referring to Permanent Health Insurance (better known as Income protection) then you can deduct the premium paid from gross pay and claculate the PAYE and PRSI on the remainder (known as 'reckonable pay').

It's important that you don't confuse PHI with Health Insurance such as VHI/ QuinnHealth premia- these payments don't affect the PAYE/PRSI calculations.

As a sole trader, you can deduct the amount of permanent health insurance/ contributions to a pension scheme payments in arriving at your taxable income. This is done in your tax return rather than your financial accounts.

Update..FYI

Just checked with revenue. PRSI refund due to pension contributions is ONLY applicable for PAYE income (not traders).

Likewise, there is no PRSI refund on ones Income protection contributes.

Well thats what they told me anyhow.

S.