What is minimum hours for PAYE allowance/PRSI credits?

I

imogen

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Hi I tried Google searches, Citizen's advice, social welfare etc on this but I can't seem to find anything.

Is there a minimum amount of pay or hours per week to get the PAYE allowance in a tax year?

And is there a minimum amount of pay or hours per week to get PRSI credits?

I have been self employed before in Ireland until I discovered that this completely puts you outside the social welfare net (unllike almost every other European country where you can pay voluntary social insurance to ensure that you can get eg. disability benefit should you need it... it is a little know fact that here paying self employed or voluntary PRSI only qualifies you for old age pension...)

I would not be prepared to take that risk again. I am thinking of going back to mainly self employed (as opposed to mainly employed - I have been both employed and self employed for some years) and I wondered what is the minimum PAYE hours/pay that you need per week to stay within the social welfare safety net?

Thanks for any advice

Imogen
 
Imogen

My understanding is that you have to be insurably employed and earn more than €38 a week to get a Class A PRSI Contribution. In this case you would not actually pay PRSI until the weekly earnings exceed €339. This doesn't apply to someone who is self-employed.

Example: If you work for an employer for one day a week for a full year and earn €100 a week, you should get 52 Class A PRSI contributions. It will cost you ZERO but your employer will have to pay 8.5%.

My understanding of the tax credit system (limited as it may be) is that the Tax Credits cover the full tax year. They don't apply on a weekly or monthly basis.

Example: If someone gets a job in the morning they will have the benefit of the full tax credits for 2006 even though we are in December.

Someone please correct if I'm wrong.

Hope this helps
 
Thanks busymam

I think you are right but I hope when the budgetary ruminations are completed one of the many experts on this site will confirm or deny...!

All the best

Imogen
 
As far as I know You are entitled to PAYE credit if you are paying any Tax under PAYE but the credit cannot exceed the tax paid under PAYE
 
shane55 said:
As far as I know You are entitled to PAYE credit if you are paying any Tax under PAYE but the credit cannot exceed the tax paid under PAYE
Click to expand...

Correct, but certain company directors and those working for family members may not be entitled to the paye credit at all.
 
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