Scope v Homemaker’s Scheme

Dear Money Mentor,

Having read your article dated 15 July in relation to the Homemaker’s Scheme, I was hoping you would review and respond to my query below please. My understanding from the article is that the key determinants of eligibility for the Homemaker’s Scheme/SCOPE Section are:

  • 1 Ability to prove that you were farming in partnership.
  • 2 Having had at least 520 self-employed PRSI contributions, prior to age 66.
  • I am enquiring on behalf of my mother, who has made 506 self-employed PRSI contributions to 2010 (aged 61 in 2010). My father has made well over 520 contributions. Consequently, our initial view is that she should/would qualify for either/one of these schemes.

    Could you assist us in recommending the next steps to determine eligibility please?

    Dear reader,

    I talked to Noel Leahy about the details of your parents, He is doubtful if the Homemaker’s Scheme can help your mum as she does not have 520 contributions. He felt she does look like an ideal candidate for SCOPE. Some of the following conditions have to be satisfied:

  • 1 Written partnership agreement/married.
  • 2 Each partner writes cheques.
  • 3 Joint business account.
  • 4 It is apparent to those doing business with a partnership that a partnership exists.
  • 5 Business activities are in joint names.
  • 6 Each partner makes a significant contribution to the running of the business.
  • 7 The business is jointly owned, this is not necessary.
  • 8 The profits and losses are shared. They do not have to be shared 50:50.
  • I suggest you give Noel a ring directly, on 087-266-3443, or email noelpatleahy@eircom.net.

    Contributory pension

    Dear Money Mentor,

    I am a 63-year-old lady. I retired from the HSE on a pension of €11,000 per annum, at the age of 52. Since then I have been self-employed and paid my PRSI contributions each year to date. I hope to work for another few years. Can you tell me where do I stand with regard to my contributory pension at 66?

    Dear reader,

    Noel Leahy said you are lucky, as you must have been born in 1954. If you were born in 1955, Noel said you would not get your pension until the age of 67. According to Noel, you will qualify for a partial state pension at 66. With 14 years paid, you will get the minimum, currently €97 per week. You may get to the next level of €155.

    Registered VAT query

    Dear Money Mentor,

    I am currently a self-employed fitter and am registered for VAT since March 2016. I have purchased some ewes this year and started to rent some ground. My question is can I/should I keep the sheep money separate to the welding, so as there is no VAT involved with the sheep, or keep the accounts all together?

    Dear reader,

    It is hard to give a definite answer without looking at the profits of the welding business and the number of ewes. If it is a small number of ewes, I’d say keep all VAT registered for now and see in a year or two if it is worthwhile to separate out the sheep business.

    Accessing PRSI contributions

    Dear Money Mentor,

    I read your articles on PRSI with interest and tried to ring the number given to get my own records. They directed me to www.welfare.ie where I have to set up an account. I am not good with computers and don’t really want someone else to do it, as I feel it is private. What can I do?

    Dear reader,

    You are right, in the past you could simply phone, write or email the Department of Social Protection and in a few weeks you got the records in the post. Now when you ring the number it says that this has changed since July and everyone must create an account on www.welfare.ie. I am all for progress and cutting costs by making things more efficient, but it should not go as far as making it more difficult for some.

    Talking to Noel Leahy, he finds it is causing difficulty for elderly people, as it is mostly people over 60 that are affected.

    “Most of these people don’t actually need an account or Government ID to draw down their pension. All they will ever require to source their State pension is to complete the form STPI,” said Noel.

    I contacted the Department of Social Welfare, they told me of the changes, but also said that in extreme cases they will accept a request over the phone. You could try this by going through to customer service and explaining your situation.

    Alternatively, go into a citizen’s advice centre and they could help you create an account. Either way, as the many cases that have done it, it is worth getting your PRSI to see your situation. CL