Revenue provides clarification on disclosure of employer PRSA contributions

The Institute recently provided feedback to Revenue regarding the following issues identified with the treatment of employer PRSA contributions on the 2024 Form 11:

• Revenue guidance on completing the 2024 Form 11 on page 46 directs the taxpayer to include details of the employer PRSA contribution in line 239 of the 2024 Form 11 rendering it taxable income. This treatment is no longer applicable since 1 January 2023.
• Revenue’s Return Preparation Facility (RPF) and online Form 11 is aggregating the employer’s PRSA contribution with the employee’s PRSA contribution when computing the tax relief. This treatment is no longer applicable since 1 January 2023.

Following our engagement, Revenue has issued updated guidance on the Income tax return form 2024 which includes  a direction in paragraph 8 for the taxpayer to leave the employer’s PRSA contribution box blank on the 2024 Form 11. This ensures that the employer’s PRSA contribution is not aggregated with the employee’s PRSA contribution when computing the tax relief.

Revenue has also informed us that the Guide to Completing 2024 Pay & File Self- Assessment Return will be updated regarding these issues.

In addition, the updated guidance provides information for non-resident landlords when making a claim for Residential Premises Rental Income Relief (RPRIR). Details are also included in the guide on the changes to PRSI contributions for those aged sixty-six and over, including details on how to claim an exemption for PRSI on the 2024 Form 11.