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Tax / PRSI / Health Contribution / Self-Employed

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  • 01-07-2003 11:44am
    #1
    pod
    Closed Accounts Posts: 130 ✭✭


    In the finfacts site:-

    http://www.finfacts.ie/fincentre/tax2003.htm

    for a single self-employed person making profit of €28,000 it states that the tax rate is 20% and personal tax credit is €1520.

    €28,000 x 0.20 = €5600
    €5600 - €1520 = €4080 = tax

    It also states Self Employed Contributions are:-
    PRSI 3%
    Health Contribution 2%

    Would this be 3% & also 2% (total 5%) of the original €28,000 ?
    (not 5% of the tax)


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    #2
    Victor
    Registered Users Posts: 78,421 ✭✭✭✭Victor


    Originally posted by pod
    It also states Self Employed Contributions are:-
    PRSI 3%
    Health Contribution 2%

    Would this be 3% & also 2% (total 5%) of the original €28,000 ?
    (not 5% of the tax)
    It is based on the €28,000 (not necessarily exactly equal to 5%*€28,000, there may be some allowances).

    It is not 5% of the tax.


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    #3
    pod
    Closed Accounts Posts: 130 ✭✭pod


    thanks Victor.

    By allowances do you mean the "credits" as listed on the link in my original message?

    I think there's also a tax credit equal to 20% of amount paid for household rubbish collection and water charges.

    I think these are all the credits; unless anyone knows any others...


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    #4
    Victor
    Registered Users Posts: 78,421 ✭✭✭✭Victor


    Originally posted by pod
    thanks Victor. By allowances do you mean the "credits" as listed on the link in my original message? I think there's also a tax credit equal to 20% of amount paid for household rubbish collection and water charges. I think these are all the credits; unless anyone knows any others...
    No problem. No the credits / bands / whatever for PRSI / HC are completely different (I know :rolleyes:).

    I think for self-employed people PRSI is 3% up to a certain maximum, with a minimum payment of about €300 per year. The HC is 2% over a certain income.

    Taxwise there are many credits available, pensions, health insurance, health expenses, rent and mortgages - each has separate requirements.


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    #5
    LoneGunM@n
    Closed Accounts Posts: 1,414 ✭✭✭LoneGunM@n


    The ceiling for the calculation of the PRSI Contribution for self employed individuals has been removed and the Contribution is calculated as 3% of the total self employed income, with a minimum charge of €253.00.

    In relation to the Health Contribution, the rate is 2% and is also charged on the total self employed income. There is an exemption from the Health Contribution when the self employed income is below €18,512.00.

    Hope this helps out!!


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