The Revenue Commissioners are the primary collection agents in relation to income tax and outstanding PRSI for the self-employer. Income tax and PRSI payable by a self-employed contributor is treated as one aggregate sum in accordance with the provisions of Section 23(4) of the 2005 Social Welfare Consolidation Act. For that reason, it is not possible to separate payments to Revenue between tax and PRSI liabilities or to front-load the discharge of the PRSI element of the overall tax liability. Section 110 (1), Social Welfare (Consolidation) Act, 2005 provides that a self-employed contributor shall not be regarded as satisfying the qualifying conditions for state pension (contributory) unless all outstanding self-employment contributions are paid. Section 110 was amended in the Social Welfare and Pensions (No 2) Act 2009 to provide that where unpaid self-employment contributions are paid subsequent to the claimant’s 66th birthday, a state pension (contributory) will only be payable from the date on which the liabilities are fully discharged. While my Department does on occasion advise customers of their PRSI liability, the Department cannot advise on any other liabilities (e.g. taxation) as these are a matter for the Revenue Commissioners. Collection of any outstanding PRSI remains a matter for Revenue and for the reasons set out above, any communication from Revenue is likely to set out the full outstanding liabilities (PRSI, Tax etc.).
