avc tax credit

noelch

Hi
I made an avc pension contribution of €6500 in nov. 2010 which gave me a tax credit of €1300. This was applied to my salary in dec. 2010 which meant I got a refund of that year’s tax, that amounted to €130 approx.
The tax credit of €1300 was on my new 2011 tax credit cert & it meant I was not paying any tax. In july 2011 I got an amended tax cert issued to me, which removed the €1300 tax credit & put me on a week one basis. From jan. to july I saved about €400 in tax which combined with the €130 from 2010 amounts to €530.
My question is am I not entitled to the full €1300 tax credit?
Any help would be much appreciated.

Thanks

Shane732

noelch wrote: »

Hi
I made an avc pension contribution of €6500 in nov. 2010 which gave me a tax credit of €1300. This was applied to my salary in dec. 2010 which meant I got a refund of that year’s tax, that amounted to €130 approx.
The tax credit of €1300 was on my new 2011 tax credit cert & it meant I was not paying any tax. In july 2011 I got an amended tax cert issued to me, which removed the €1300 tax credit & put me on a week one basis. From jan. to july I saved about €400 in tax which combined with the €130 from 2010 amounts to €530.
My question is am I not entitled to the full €1300 tax credit?
Any help would be much appreciated.

Thanks

I have no idea where you're getting your figures from so I'm not in a position to confirm whether you would have been entitled to the full €1,300 back.

Your figures look wrong to me. Ultimately you should get 41% on an AVC contribution assuming you have paid enough tax at the higher rate of tax.

In addition your pension tax credit should more than likely not have been on your tax credit certificate in the first place in 2011.

It is possible that you may actually owe tax as a result of the inclusion of an incorrect tax credit on your tax credit certificate.

Shane732

The best thing to do is to fill in Form 12's for both years and the Revenue will issue P21's to you for both years. This will correct any underpayment/overpayment of tax that you may have made.

noelch

hi there
I pay tax at 20% rate, so 20% of €6500 avc = €1300. I got back all tax paid in 2010 which amounted to €130 & I thought i could claim the balanace in 2011.

Alan Shore

Hi

How much tax did you pay in 2010. You can only get a refund if you paid tax. So if you only paid €130 in tax thats all you can get back. What was your income in 2010. The allowable amount of the pension in based on your salary and age. If some of the pension breached this limit then you can carry that amount forward.