Social Welfare Consolidation Act 2005

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Rates of self-employment contributions and related matters.

[1993 s18(1); 2001 s36 & Sch E]

21.—(1) Self-employment contributions shall be paid by self-employed contributors in accordance with the following provisions:

(a) subject to paragraphs (b) and (f), where in any contribution year a self-employed contributor has reckonable income there shall be payable by him or her a self-employment contribution which shall be the greater of an amount equal to 3 per cent of the reckonable income or the amount of €253;

(b) where for any contribution year a self-employed contributor is informed by the Revenue Commissioners that he or she is not required to make a return of income within the meaning of section 1084 of the Act of 1997, self-employment contributions shall be paid by the self-employed contributor (whether by instalments or otherwise as may be prescribed) amounting to €157 in respect of that contribution year;

(c) subject to paragraph (f), where in any contribution year a payment is made to a self-employed contributor in respect of reckonable emoluments of that self-employed contributor, there shall be payable by him or her a self-employment contribution which shall be the greater of an amount equal to 3 per cent of the reckonable emoluments or the amount of €253;

(d) subject to regulations under section 22 , where a self-employment contribution has been paid by a self-employed contributor of not less than the amount that he or she is liable to pay under paragraph (a) or the amount specified in paragraph (b), whichever is appropriate, the self-employed contributor shall be regarded as having paid contributions for each contribution week in that contribution year and, where the contribution paid is less than that appropriate amount, no contribution shall be regarded as having been paid by the self-employed contributor in respect of any week of that contribution year;

(e) subject to section 26 (3), self-employment contributions shall be disregarded in determining whether the contribution conditions for any benefit other than old age (contributory) pension, widow’s (contributory) pension, widower’s (contributory) pension, orphan’s (contributory) allowance, maternity benefit, adoptive benefit or bereavement grant are satisfied;

(f) a person who, but for this paragraph, would be liable for contributions of €253 under paragraphs (a) and (c) shall be liable only for a single contribution of €253.

(2) Regulations may provide for adjustments in the calculation of amounts payable in respect of self-employment contributions to facilitate computation and for the elimination from self-employment contributions of amounts of not more than 5 cent and for the rounding up of amounts of more than 5 cent but less than 10 cent to 10 cent.

(3) Where, for a year of assessment (within the meaning of the Tax Acts), the Revenue Commissioners and an employer enter into an agreement under a specified provision of the Act of 1997 whereby the employer will account to the Revenue Commissioners, in accordance with that provision, in respect of the income tax due on qualifying emoluments (within the meaning of that provision) and where that agreement is not null and void, then in respect of those qualifying emoluments—

(a) the employer—

(i) as part of that agreement and in so far as the qualifying emoluments are comprised of reckonable emoluments of a self-employed contributor to which the agreement applies, shall pay a contribution at a rate of 3 per cent in respect of the aggregate of the amount of those reckonable emoluments and the amount of income tax payable under the agreement in respect of them, and

(ii) notwithstanding Article 7 of the Regulations of 1996, shall not be entitled to recover from an employed contributor any part of a contribution paid in accordance with subparagraph (i),

and

(b) a contribution paid in accordance with paragraph (a)(i) shall not be regarded as a self-employment contribution for the purposes of determining entitlement to any benefit specified in section 39 (1).

(4) In subsection (3) “specified provision” means such provision as may be prescribed for the purposes of that subsection.