PRSA employer contribution question

marc1

Hi everyone,

I am trying to fill out the Form 11 for 2019 and I am running into an issue that I am hoping someone might be able to help with.

For some reason the amount I fill in for contributions by my employer to my PRSA, that full amount gets added as BIK and I don't get any relief for it, so the calculator charges me full tax for this amount.

From my understanding employer PRSA contributions should not be taxed?




Here the details:

- On the PAYE/BIK/Pensions (2) tab I have added the amount of PRSA contributions by my employer to the "Taxable Benefits (not taxed at source under PAYE)" field. This is the amount that gets added as a BIK with no relief.


To try and get relief on this I have tried the following:

- In the "Pension Relief" panel (pop-out) I have filled in "gross employment income" and "Maximum relief due" calculates correctly.

- In the same "Pensions Relief Panel" I have also filled in "Less pension contributions including contribution to QOPPs which are relieved under sections 774 and 776 via the net pay arrangement (no further relief due on this amount)": In here I put in just the contributions that were subtracted from my wages by my employer (employee contributions). (separate from employer contributions)

- "Maximum additional relief due" calculates correctly and there is a balance left.

- All other numbers say 0 on this sheet.

On the "Charges and Deductions" panel under "Pension Contributions" - "Personal Retirement Savings Accounts (PRSAs)" I have filled in:
- b) PRSA contributions deducted by your employer from your salary (for which no further relief is due)
- c) PRSA contributions made on your behalf by your employer. (Note to include this in the Taxable Benefits section of the PAYE/BIK/Pensions panel)

At the bottom of this section:

"Pension Contribution Relief" is 0
"Total amount of Retirement Annuity Contract/PRSA/QOPP relief claimed in 2019" is the same then the Employer contributions ( part c above)
"Total RAC/PRSA/QOPP allowable" is 0.


I know this is a lot of detail, any ideas?!?

Tow

PRSAs were supposed to be the answer to Ireland's pension problems, but ended up a 2nd class pension.

It is a long standing issue, dating from when the legislation for PRSA pensions was written. From memory, a few years after their introduction IPASS spotted a legal issue and brought it to Revenue's attention. The end result was Revenue promptly slapped BIK on Employer contributions...

Anyway: https://www.revenue.ie/en/tax-professionals/historic-material/ebrief/2011/no-362011.aspx#:~:text=An%20employer%20contribution%20to%20an,)%20Taxes%20Consolidation%20Act%201997).

marc1

Thank you Tow,
That's true, they are considered BIK, but not taxed!

"However, the benefit is taxable only where the aggregate of employer’s and employee’s PRSA contributions exceed the employee’s age-related limit."

https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/other-benefits/pension-contributions.aspx

I just don't see a way to ensure that tax isn't charged when filling in the Form 11! And nobody at revenue is picking up the phone at the moment...

Calahonda52

I presume you have your DOB in the Form 11.
I hadn't for years and then put it, got two years age allowance back:)

marc1

Calahonda, yes I do and it's giving me the correct age % (20%)
Thank you, that's not it :-(