AI Summary of 21. Rates of self-employment contributions and related matters.
Under section 38BA, self-employed contributors are required to pay self-employment contributions based on reckonable income, with the amount being the greater of 4.2 per cent of the reckonable income or a fixed amount of €650. For contributors who are informed by the Revenue Commissioners that a return of income is not required, a reduced contribution of €310 is applicable. Contributions are also determined by reckonable emoluments in a similar manner. Notably, contributions must meet specified thresholds to be regarded as paid for the entire contribution year, and certain contributions are disregarded for calculating eligibility for various benefits.
Furthermore, adjustments to the calculation of contributions may be outlined in regulations, while contributions related to specific agreements between employers and the Revenue Commissioners will not count as self-employment contributions for benefit eligibility. Additional stipulations apply to contributors claiming childcare services relief, limiting their liability to €650.
21. Rates of self-employment contributions and related matters.
(1)Subject to section 38BA, self-employment contributions shall be paid by self-employed contributors in accordance with the following provisions
(a) subject to paragraphs (b), (ea) 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 4.2 per cent of the reckonable income or the amount of €650;
(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 €310 in respect of that contribution year;