Irish Revenue has updated its self-assessment guidance to clarify PRSI liability, including the rules applying to self-employed people, employees and certain individuals aged 66 to 70 who have not been awarded the State Pension (Contributory).
Irish Revenue has updated its guidance on the Irish Self-Assessment system to clarify which individuals are liable for Pay-Related Social Insurance (PRSI) contributions.
The changes were issued through eBrief No. 126/26 on 28 August 2026, which updates Tax and Duty Manual Part 41-00-28: A Guide to Self-Assessment, including Section 6 on PRSI liability.
Who is liable for PRSI
Under the updated guidance, with very few exceptions, PRSI contributions apply to:
- Self-employed people with a minimum annual income who are aged 16 or over and under 66;
- All employees, whether full-time or part-time, aged 16 or over and under 66; and
- From 1 January 2024, employed or self-employed people aged between 66 and 70, born before 1 January 1958, who have not been awarded the State Pension (Contributory).
The guidance also confirms that the Department of Social Protection (DSP) is responsible for determining the PRSI class that applies. Queries concerning PRSI should therefore be directed to the DSP.
Scope of self-assessment
The Irish Self-Assessment system covers Income Tax and Capital Gains Tax (CGT) for individuals who are chargeable to tax.
It applies to self-employed people carrying on a business, farming, profession or vocation. It also covers individuals with non-PAYE income where some or all of the tax cannot be collected through the PAYE system.
This can include rental profits, investment income, foreign income, foreign pensions, maintenance payments and other fees not subject to PAYE. Registration is generally required where net non-PAYE income exceeds EUR 5,000 or gross non-PAYE income exceeds EUR 30,000.
Individuals can register online through the eRegistration service or by submitting a paper Form TR1. Registration automatically registers the taxpayer for PRSI with the DSP. Taxpayers must use their PPS Number for registrations and communications with Revenue.
Pay and File deadlines
Self-assessment operates under the “Pay and File” system, with a standard deadline of 31 October.
Taxpayers must by that date pay Preliminary Tax for the current tax year, file their tax return and self-assessment for the previous tax year, and pay any remaining tax balance for that previous year.
For the 2025 income tax year, the electronic ROS Pay and File deadline has been extended to Wednesday, 18 November 2026.
Preliminary Tax is an estimate of the current year’s Income Tax, PRSI, and Universal Social Charge (USC). To avoid interest, the payment must generally meet the lowest applicable threshold of 90% of the current year’s final liability, 100% of the previous year’s final liability, or 105% of the final liability for the pre-preceding tax year where the direct debit conditions are met.
Late or insufficient Preliminary Tax can result in daily interest under Section 1080 of the Taxes Consolidation Act.
Filing and record requirements
Since January 2015, newly registering or re-registering self-assessed taxpayers have been required to file and pay electronically through ROS, subject to applicable rules.
Self-employed taxpayers must prepare full business accounts but do not generally submit them with their returns. Instead, relevant figures are entered in the “Extracts from Accounts” section of Form 11, or its ROS equivalent.
Late filing after 31 October can result in a surcharge of 5% of the tax, capped at EUR 12,695, where the return is filed within two months of the deadline. A 10% surcharge, capped at EUR 63,485, applies where the return is filed more than two months late.
Taxpayers are also required to retain full and accurate business records, including books of accounts, sales and purchase records, bank statements, receipts and invoices, for at least six years.
CGT obligations
The guidance also covers Capital Gains Tax (CGT), which applies to gains arising from the disposal of assets such as land, houses and shares through sales, gifts or donations.
Unlike Income Tax, CGT does not have a Preliminary Tax element and must be paid in full by the relevant deadlines. For disposals between 1 January and 30 November, payment is due by 15 December of the same tax year. For disposals between 1 December and 31 December, payment is due by 31 January of the following tax year.
The disposal must be reported through an Income Tax return, Form 11, or a dedicated Form CG1, by 31 October in the year following the disposal.
