PRSI to be levied on bank interest and other income
Q&A:I am confused. When submitting the tax return Form 11 online over the years, I always had to pay PRSI on the bank interest earned on my deposits (ie, bank interest on deposits was always liable to PRSI). I am self-employed. Can you clarify this ? Mr J C, DublinAs you say, the budget day change to rules for PRSI on savings is no news to people who are self-employed. They have always been liable to PRSI on income from investments (including deposit accounts) under Class S. They have also been obliged to file returns. That has not been the case for PAYE workers.
Essentially, the measure announced in the budget standardises things. From 2014 onwards, everyone will have to pay PRSI on bank interest and other forms of “unearned income” such as dividend payments or rental income.
In all likelihood, they will have to file returns as well for the first time, though Revenue has yet to decide on that formally.
No exemption for stamp duty already paid
Was any exemption to the property tax introduced for those who paid high stamp duty during the boom years?
Ms M D, Dublin
No it wasn’t. Interesting that you ask though, as it was a central plank of Fine Gael pre-election commitment to voters.
At that time, they assured people who had bought property during the real bubble years of the boom that they would make provision for them – especially in the event of any property tax being introduced.
Since then, the Government has made some provision for first-time buyers who bought homes close to the peak. However, people who upgraded during that period have seen nothing to mitigate their position – and it appears now that they won’t.
People in that position have argued that they paid property tax in advance on their homes through stamp duty – some of them high five-figure sums.
However, it appears the Inter-Departmental Expert Group on proposals for a property tax advised against any measure to take account of this.
What will probably gall hard-pressed homeowners most is the way that Fine Gael has no issue with quietly dropping some commitments while asserting their word is their bond on others, such as the Croke Park accord or the “cordon sanitaire” around income tax rates.
How will medical card cut affect me?
I am a pensioner over 70 years old with a medical card. Would you please tell me the post-budget threshold for a single person?
Ms MH, Dublin
The income threshold for medical card eligibility has been reduced to €600 per week for a single person and €1,200 per week for a couple. That equates to €31,200 per annum for a single person and €62,400 for a couple.