Revenue eBrief No. 40/13

19 September 2013
PRSI changes for modified rate employees (civil and public servants) with additional income

From January 1st 2013, where civil and public servants paying the modified PRSI rate (PRSI Classes B, C or D) also have income from a trade or profession, such income and any unearned income (e.g. rental income) is subject to a Class K PRSI rate of 4%, and is payable through the self-assessed tax system. Social insurance benefits do not accrue in relation to Class K PRSI contributions.

In calculating Preliminary Tax liability, taxpayers are reminded that it is their estimate of the Income Tax and related charges that is payable for the tax year and it must be paid by 31st October. Any taxpayer affected by these changes should ensure that, in calculating their Preliminary Tax payment for 2013, it covers the liability to PRSI and Universal Social Charge, as well as Income Tax.