PRSI class on Investment income

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mcriot29

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Hi all just wondering what class of Prsi do I pay
I will do a form 11 and have no other income only investment income no employment .
Is it class s or k will I get pension entitlement
 
mcriot29 said:
Interest is paid as income tax rate
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I don't understand what this means.
So it's interest on cash on deposit?
If you are in receipt of more than €5K deposit interest then you need to register for self-assessment for the relevant year.
For 2025 you'll need to get moving to get registered for ROS and self-assessment.
PRSI on deposit interest over €5K is likely class K so no help with with old age contributory pension.
See this thread which also refers to deposit interest and self-assessment.

 
I have registered im asking what class of prsi am I paying s or k its doesn’t say what class
I presume s since I don’t have any other income and obviously want to know for pension contributions
It not deposit income it’s interest and dividends well over the 5k threshold
 
I get taxed at my standard tax rate via form 11 but it does not say what class prsi I’m paying is it class k or s huge difference in the two for pension contributions
 
Why don't you just do the return?
You're not going to have any say in what class of PRSI is charged.
 
The return has been done and paid but they don’t say what class of prsi I’m paying,but from the link below it’s seems i am under class S.

https://www.oireachtas.ie/en/debates/question/2024-05-29/135/
Here seems to say class s
 
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Maybe you won't find out until Revenue remit the details to DSP/SW and they reconcile your 2025 PRSI records/PRSI contribution statement?
 
You will be class S.

To check out the convoluted rules for class K read answer no. 9 here

Key Post - PRSI and planning retirement

This Key Post is in the form of a FAQ where I don't know many of the answers. I will update the post as I get answers. 1. PRSI payable on reaching state pension age Answer: 0 (Class M) 1a. Does this relate to the start of the tax year in which you become 66? Or to after your birthday? Answer...
www.askaboutmoney.com

Be careful as 1 or more class A contributions in any particular year will convert your unearned income to class K for that year.

Online form 11 will allow you to receive personal tax credits against your investment income.

If you have not already done so, you should register for income tax and submit an online form 11.

There is an extended deadline for this up to 18th November 2026.
 
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It depends


Class S Appiles to self-employed individuals, proprietary directors, and individuals whose only income is unearned/investment income (such as rental income, dividends, interest, or foreign investment gains)( provided their total gross unearned income is €5,000 or more per year)

Class K which is for people who are already employed (paying Class A PRSI through payroll) or receiving an occupational pension, and who have secondary unearned investment income

It in your care because you have no Schedule E employment or pension(assuming )then class K

From gov.ie

" Individuals in the following employments will be classed as PRSI Class K9 and will pay the rate in the table below;

modified rate contributors for example, civil and public servants recruited prior to 6 April 1995, with self-employed earned income from a profession or trade and any other unearned income such as rental or investment income
employees and occupational pensioners with no additional earned self-employed income but who do have unearned income only such as rental income, investment income, dividends and interest on deposits and savings"
 
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thecoffeepod said:
Class S Appiles to self-employed individuals, proprietary directors, and individuals whose only income is unearned/investment income (such as rental income, dividends, interest, or foreign investment gains)( provided their total gross unearned income is €5,000 or more per year)
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Class S applies to any person whose only source of income is unearned and 5k or more.

A person whose only source of income is unearned and 5k or more is classed as a self employed person.

However if this person also has earned self employed income and the total of their unearned income and earned self employment amounts to 5k or more they will be class S. This person can also have PAYE employment and still receive class S on their unearned and earned self employment income.
 
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Hi yes my only income is from investments so it does look like class s to me
I don’t have any income from any paid employment self or Paye
 
From the minister of social protection in 2024
Prior to 1 January 2014, a person with solely unearned income under self-assessment, such as rental income, who was in insurable employment during the same year, was categorised as an excepted self-employed contributor. This meant that such persons were not liable for PRSI under self-assessment in respect of the unearned income and would not have been awarded PRSI class S contributions.

Under provisions of the Social Welfare and Pensions Act 2013, which came into effect on 1 January 2014, PRSI contributions became liable by certain insurably employed contributors on their unearned income, subject to the unearned income reaching the chargeable person threshold of €5,000 per annum set by the Revenue Commissioners. This contribution, recorded as Class K, does not provide entitlement to any social insurance benefits.

If an individual has solely unearned income and they do not have income from insurable employment then PRSI class S is charged under self-assessment, as long as the threshold of €5,000 per annum is reached.

I trust this clarifies the matter for the Deputy.
 
@mcriot29 If in the future you take up short periods of PAYE employment, you could avoid your investment income reverting to class K by taking up minimal earned self employment.

This could be as simple as cutting a friend's lawn and getting a payment of €20. Submit the €20 on form 11 as self employment and you will continue to gain class S on your unearned income.

This could be useful if you want to qualify for Benefit payment 65.
 
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