Mr M is in the enviable position of being retired, but still doing some consultancy work and receiving an income from a number of non-executive directorships.
He doesn't say how much he earns from all this, but he notes that "PRSI is being deducted at source from my director's fees at a variety of different rates, namely zero, 2.5 per cent, 4.5 per cent and 5.5 per cent. Which is the correct rate and how do I calculate my liability at the end of the tax year and if I have overpaid, how do I go about obtaining a refund?"
Ms Dervilla Whelan, a tax partner at O'Hare & Co, Dublin-based accountants, says: "It is conceivable that your reader is paying different rates of PRSI, depending on the source of the income. Ordinarily this involves PRSI under Class A, as an employee or Class S, as a self-employed person or director."
The percentage he pays as a director must be further qualified, says Ms Whelan, depending on whether he is a proprietary director with more than 50 per cent worth of shares in the company, or a non-proprietary one with less than 50 per cent worth.
"While there is an over-all income limit for the amount of PRSI that is payable - £24,200 - the rates from different sources of income all operate separately and that limit could be exceeded. If you have overpaid, you need to send your P60s into your Inspector of Taxes to claim a refund."
