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Retirement Pension lump sum

  • 11-02-2017 11:00am
    #1
    jos28
    Registered Users, Registered Users 2 Posts: 7,220 ✭✭✭


    I'm looking at this for a friend and want to make sure claim it correctly.
    It's for 2016 and she was paid €18k from a Personal Retirement plan. I have a P45 from the Pension provider showing that amount, tax paid was over €4k and USC of €540.00. She also has a P60 from subsequent work in 2016 showing earnings of €10K and no tax paid (her allowances cover any tax due).
    Firstly Is she due the full amount of tax/usc from the Pension fund ? Secondly, her online Form 12 has the lump sum listed as PAYE income, should this be amended and put into NON PAYE income ?
    Thanks in advance


Comments

  • #2
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    jos28 wrote: »
    I'm looking at this for a friend and want to make sure claim it correctly.
    It's for 2016 and she was paid €18k from a Personal Retirement plan. I have a P45 from the Pension provider showing that amount, tax paid was over €4k and USC of €540.00. She also has a P60 from subsequent work in 2016 showing earnings of €10K and no tax paid (her allowances cover any tax due).
    Firstly Is she due the full amount of tax/usc from the Pension fund ? Secondly, her online Form 12 has the lump sum listed as PAYE income, should this be amended and put into NON PAYE income ?
    Thanks in advance

    No, it is PAYE income. The tax that has been stopped on it is PAYE.

    He or she won't likely get all of the tax back. The amount due back will depend on the tax credits / Cut off point due, and these differ based on personal circumstances


  • #3
    jos28
    Registered Users, Registered Users 2 Posts: 7,220 ✭✭✭jos28


    Thanks Gerry, I thought as much but she was under the impression that you can get up to €200k tax free on a pension lump sum.
    Either way she is still getting a decent refund so she's happy with that. Thanks for your help.


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