newseeker1
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To be subject to PRSI on unearned income you have to be a chargeable person so have non PAYE income of €3,174.Hi
Thanks
- That proposal was approved in the Finance Act after Budget 2013 - correct?Yes
- Will this be deducted at source same as DIRT or will you have to self declare it yourselfNo
- If you have to declare it yourself; how it that done; via Form 12 Form 11
- Would you be filling Form 12 out in 2015 to file in Oct 2015 relating to this for 2014 liability
More unnecessary complication from our tax system
They should be open with the population and charge DIRT at 45% if thats what they need to do, rather than try to disguise the extra 4% grab and in the process, add confussion which the tax payer is liable for any mistakes regarding.
More unnecessary complication from our tax system
They should be open with the population and charge DIRT at 45% if thats what they need to do, rather than try to disguise the extra 4% grab and in the process, add confussion which the tax payer is liable for any mistakes regarding.
In Budget 2013 it was announced that from 1 January 2014, the exemption from PRSI applying to employed contributors and occupational pensioners under state pensionable age whose only additional income is unearned income, will be abolished.
This means that unearned income such as rental income, investment income, dividends and interest on deposits and savings will be liable to PRSI.
Interest on deposits and savings is currently liable to DIRT (increased to 41% from 2014 as announced by the Minister for Finance in his Budget 2014 speech). This income will now also become liable to PRSI at 4% for the above persons provided the person is a chargeable person in accordance with the Revenue definition as detailed below.
A chargeable person does not include a PAYE taxpayer (i) who does not have other income or (ii) who has an element of other insignificant income that is fully taxed through the Revenue Commissioners PAYE system (Revenue regard amounts not exceeding €3,174 as insignificant. Individuals with income exceeding €3,174 must pay and file under Revenue's self-assessing system).
" Remember it's not just DIRT that adds to the 3,174 threshold, but all "unearned income", e.g. rental income."
Unearned Income.....Does that include income from the Rent a room scheme?
I think it is simply a case of getting 4% of the pre DIRT interest? If your 5000 euros is post DIRT, divide 5000 by 0.59 first and then work out 4% of that.I tryng to get idea what would be the figure owing to revenue If you had un-earned income of circa 5k for 2014 (interest received from savings and investments)
Whats the formula to work out what you owe?
Thoughts
What sort of investments? If it's all earnings from deposit interest that incurred DIRT then you owe Revenue an additional 4% PRSI on the total before DIRT (or use The Ghoul's formula above on the post-DIRT total to calculate the pre-DIRT total first ... although you should be able to get that number from your bank statements). If you are talking about other sorts of investments you may be liable for income tax or Capital Gains Tax as well.I tryng to get idea what would be the figure owing to revenue If you had un-earned income of circa 5k for 2014 (interest received from savings and investments)
Whats the formula to work out what you owe?
Thoughts
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