Pension Tax Relief

Benzino

Hi,

I have a private pension and am currently contributing 15% of my salary as I am under 30. This year I will turn 30 and will also be moving to a higher salary than I am on now.

So my question, does it matter what my age and salary was at the start of year? Or can just make a total contribution of 20% of my new salary by years end and claim relief on that?

Thanks.

Uncle Mclovin

If you turned 30 in 2016 then you can make a contribution of 20% of your gross salary per your P60.

You can make the pension contribution for 2016 at any time up until 31 October 2017. This is extended to 14 November if filing a tax return online.

Benzino

Uncle Mclovin wrote: »

If you turned 30 in 2016 then you can make a contribution of 20% of your gross salary per your P60.

You can make the pension contribution for 2016 at any time up until 31 October 2017. This is extended to 14 November if filing a tax return online.

Perfect, thank you for clearing that up.

Benzino

Going to bump this as I have a question. I understand I can make a once off lump sum contribution for 2016 before October 31st, does it literally have to be a single payment? I was hoping to make it via bank transfer, but I would have to do it over 2 transfers due to bank daily limit. You think Revenue would kick up a fuss over this?

nompere

Any payments made between 1 January 2017 and 31 October (or 14 November) may be claimed in 2016. You could have made separate payments every day and it would all still qualify.

exaisle

Benzino wrote: »

Going to bump this as I have a question. I understand I can make a once off lump sum contribution for 2016 before October 31st, does it literally have to be a single payment? I was hoping to make it via bank transfer, but I would have to do it over 2 transfers due to bank daily limit. You think Revenue would kick up a fuss over this?

No, it's all part of the same transaction.

Benzino

Perfect, thanks everybody!

TiGeR KiNgS

As a PAYE worker, how do I claim the pension tax relief if I make a qualifying payment before the 31 October 2017?
I dont see any input box for pension payments on 'MyAccount'

Do I just ring the Revenue office and tell them I made a payment or is there a submission I need to send them ?

Thanks.

delta_bravo

Just a follow up question on the tax relief, does it only apply to tax paid at the higher rate? For example last year say you earned 20k as you didn't work all yea and decided to put 2k into a pension do you get any tax relief or do you need to have earned over the cut off point?

scheister

TiGeR KiNgS wrote: »

As a PAYE worker, how do I claim the pension tax relief if I make a qualifying payment before the 31 October 2017?
I dont see any input box for pension payments on 'MyAccount'

Do I just ring the Revenue office and tell them I made a payment or is there a submission I need to send them ?

Thanks.

they are likely to tell you to forward a cert from the pension company via myenquiries. Once they receive that they will issue a P21 and give back any refund that is due.

delta_bravo wrote: »

Just a follow up question on the tax relief, does it only apply to tax paid at the higher rate? For example last year say you earned 20k as you didn't work all yea and decided to put 2k into a pension do you get any tax relief or do you need to have earned over the cut off point?

If you put 2k into a pension you will get relief at ur marginal rate. So in your example your relief is 20% of 2k or €400. Based on standard rates and bands and that you are single PAYE due for the year was €700 so you will get a refund of the €400. If you are single income family and you have all the credit no refund would be due as you paid no tax