Q.  I am setting up my own business and will need to pay self-employed PRSI. How do I register for this and what does it cover?

11.10.09

Up to 2007, people starting self-employment were required to register as self-employed with the Department of Social and Family Affairs by completing form SE3, as well as registering with the Revenue Commissioners. However, it is now no longer a requirement to register separately with the Department. When you register with the Revenue Commissioners you will automatically be registered for PRSI. You will find information on registering as self-employed (using form TR1) in booklet IT 48 Starting in Business. Both form and booklet are available on www.revenue.ie .

When you are registered you will pay at Class S. This class applies to self-employed people, including certain company directors, people in business on their own account and people with income from investments and rents. It doesn’t cover you for jobseeker, illness or disability payments, but it does cover you for the following social insurance payments: Widow’s and Widower’s (Contributory) Pension, Guardian’s Payment (Contributory), State Pension (Contributory), Maternity Benefit, Adoptive Benefit, Bereavement Grant.

If your business closes and you stop being self-employed, or if your annual income falls below €3,174, and you are under age 66, you may apply to become a voluntary contributor. Voluntary contributions give cover for the pensions that you were covered for when you were last working and paying compulsory PRSI.
 

Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741

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