Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

tax relief calculation help please

  • 18-11-2015 1:26pm
    #1
    Registered Users, Registered Users 2 Posts: 3


    Hi,

    Thanks in advance for any advices.

    I am newly self employed (trading 1 year). If i have a tax bill of 5,000. i wanted to ask about my allowances for pension and phi contributions.

    I am 30 years of age so i think i can contribute 20% of my net relevant earnings will be approx €23,000.

    So if i maximise my contributions i can contribute €4,600.

    Also i contribute to a phi policy. I pay approx 45 a month. That's €540 a year. So can I claim 20% of that as well? (€108).

    In full then is it possible to write off €4,708 of the €5,000?

    Thanks for your help

    JG


Comments

  • Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    Pension and PHI contributions are deductions from taxable income.

    So if you have an income of €23,000 and contribute €4,000 to a pension and €500 to a PHI, then you pay tax at 20% on €18,500 thereby saving €900.


  • Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    So you are spending €4500 on pension and PHI so as to get €900 off of your tax bill. Great if you are needing to put money into a pension and the decision has already been made. Not so great if you dont have €4500 to spare as it goes into an inaccessable pool of money that you cant touch until you retire.

    dbran


  • Registered Users, Registered Users 2 Posts: 3 JGHelp


    Alan Shore wrote: »
    Pension and PHI contributions are deductions from taxable income.

    So if you have an income of €23,000 and contribute €4,000 to a pension and €500 to a PHI, then you pay tax at 20% on €18,500 thereby saving €900.

    Hi Alan,

    Thanks for the help with this. I am new to the game and I am also looking to employ someone this year. I don't know if you can help with this particular question but they have pension they are contributing €173 to a month NET from their account. I want to do this for them via payroll. Do you know how i work out what the gross amount i need to put through their pension for payroll is? I hope to have them on €40,000 as a salary for the year and they are late 30s nearly 40.

    Any advice or help calculating would be great. I just got payroll software that I am sure will help me with this in the future but you were very helpful already so I said i'd ask.

    Thanks again


Advertisement