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Tax Rebate on AVCs

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  • 22-02-2020 5:00pm
    #1
    jos_kel
    Registered Users Posts: 431 ✭✭


    Hi All,
    I made monthly AVCs in 2019.

    How do I get a tax rebate on these?

    Thanks in advance,

    Jos


Comments

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    #2
    Nedzer01
    Registered Users Posts: 27 ✭Nedzer01


    No rebate now - though you can access it when you retire, at 68 (or later)


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    #3
    Geuze
    Registered Users Posts: 13,108 ✭✭✭✭Geuze


    jos_kel wrote: »
    Hi All,
    I made monthly AVCs in 2019.

    How do I get a tax rebate on these?

    Thanks in advance,

    Jos

    The pension insurers would have given you a cert, or some sort of proof.

    You submit that to Revenue.

    You can submit it with your normal tax return.


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    #4
    Geuze
    Registered Users Posts: 13,108 ✭✭✭✭Geuze


    Nedzer01 wrote: »
    No rebate now - though you can access it when you retire, at 68 (or later)

    Tax relief is available on pension contributions.


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    #5
    CiarraiAbu2
    Registered Users Posts: 582 ✭✭✭CiarraiAbu2


    jos_kel wrote: »
    Hi All,
    I made monthly AVCs in 2019.

    How do I get a tax rebate on these?

    Thanks in advance,

    Jos

    Register for my account on revenue, once registered file your 2019 return.

    While filing your return you will see a tab where you can enter the figure paid for 2019, make sure to claim your credits and other allowances ( medical bills).


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    #6
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    jos_kel wrote: »
    Hi All,
    I made monthly AVCs in 2019.

    How do I get a tax rebate on these?

    Thanks in advance,

    Jos

    https://www.revenue.ie/en/employing-people/what-constitutes-pay/employees-pension-payments/types-of-pension-contributions.aspx

    If the AVCs were paid from salary through the employer scheme it is possible you have already received relief on those through the “net pay arrangement”. Otherwise you can be provided with a statement showing that relief has not been granted already and then Revenue will grant any relief due. Check with the employer.


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    #7
    jos_kel
    Registered Users Posts: 431 ✭✭jos_kel


    CiarraiAbu2 wrote: »
    Register for my account on revenue, once registered file your 2019 return.

    While filing your return you will see a tab where you can enter the figure paid for 2019, make sure to claim your credits and other allowances ( medical bills).

    Novice question. How do I file 2019 return? Is this an online form on ROS?
    By the way these AVCs are separate from my employer’s scheme.
    Why do I have to adjust the tax credits, can they not just leave the credits and post me a cheque with the tax relief.


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    #8
    CiarraiAbu2
    Registered Users Posts: 582 ✭✭✭CiarraiAbu2


    jos_kel wrote: »
    Novice question. How do I file 2019 return? Is this an online form on ROS?
    By the way these AVCs are separate from my employer’s scheme.
    Why do I have to adjust the tax credits, can they not just leave the credits and post me a cheque with the tax relief.

    If you are Paye and no other, you can it through my account.
    You should check the credits to make sure what you are getting are correct, I know through Ros form 11 they don't automatically give you the Paye tax credit, than it depends on your other circumstances, single, married, spouse income etc.

    Better off filing your medical expenses as well now. The additional avc are allowed but also depends on age and income to maxamise tax savings.


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    #9
    jos_kel
    Registered Users Posts: 431 ✭✭jos_kel


    CiarraiAbu2 wrote: »
    If you are Paye and no other, you can it through my account.
    You should check the credits to make sure what you are getting are correct, I know through Ros form 11 they don't automatically give you the Paye tax credit, than it depends on your other circumstances, single, married, spouse income etc.

    Better off filing your medical expenses as well now. The additional avc are allowed but also depends on age and income to maxamise tax savings.

    So when I go through myAccount. I enter my AVCs for 2019 there?
    Is that correct?

    Thanks in advance.


  • Options
    #10
    EverythingGood
    Registered Users Posts: 2,003 ✭✭✭EverythingGood


    jos_kel wrote: »
    So when I go through myAccount. I enter my AVCs for 2019 there?
    Is that correct?

    Thanks in advance.

    If you paid AVC's via payroll then you have already reveived your tax relief If you paid privately into an approved PRSA, then enter via revenue.ie, its actually quite straight forward


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    #11
    CiarraiAbu2
    Registered Users Posts: 582 ✭✭✭CiarraiAbu2


    jos_kel wrote: »
    So when I go through myAccount. I enter my AVCs for 2019 there?
    Is that correct?

    Thanks in advance.

    Yes


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    #12
    jos_kel
    Registered Users Posts: 431 ✭✭jos_kel


    CiarraiAbu2 wrote: »
    Yes

    Had a look in myAccount but still can’t see where I can enter my non-Payroll AVC contributions for 2019.

    Apologies if I’m being silly here.


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    #13
    CiarraiAbu2
    Registered Users Posts: 582 ✭✭✭CiarraiAbu2


    jos_kel wrote: »
    Had a look in myAccount but still can’t see where I can enter my non-Payroll AVC contributions for 2019.

    Apologies if I’m being silly here.

    I only use Ros myself but is there a tab for charges and deductions?


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    #14
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    jos_kel wrote: »
    Had a look in myAccount but still can’t see where I can enter my non-Payroll AVC contributions for 2019.

    Apologies if I’m being silly here.

    If you're using MyAccount as 2019 is now over you can only get any adjustments by filing a Tax Return (eForm12). You can do that by going to :-
    Review my tax 2016-2019.
    Request provisional statement of liability.
    That will give Revenue's current position on the year.
    Then go to file return for 2019 and as you go through the sections there should be one there for the AVCs.
    You can only claim any refunds now for 2019 onwards by filing a tax return.


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    #15
    jos_kel
    Registered Users Posts: 431 ✭✭jos_kel


    Thanks a lot,
    Found it but I see this message.
    AVC relief can only be claimed if AVC contributions have been paid for you by you or your employer.

    This AVC is separate from my PAYE, and I'm asked to specify on the form
    Employment where your Superannuation Fund is held

    How can I add AVC, as it's nothing to do with my PAYE or employer.


  • Options
    #16
    cmac2009
    Registered Users Posts: 1,378 ✭✭✭cmac2009


    jos_kel wrote: »
    Thanks a lot,
    Found it but I see this message.
    AVC relief can only be claimed if AVC contributions have been paid for you by you or your employer.

    This AVC is separate from my PAYE, and I'm asked to specify on the form
    Employment where your Superannuation Fund is held

    How can I add AVC, as it's nothing to do with my PAYE or employer.

    Apologies for pulling up an old thread but I have a similar query as above.

    I've been roped into completing a tax return for my dad, and I don't live in Ireland so not overly familiar with the pension tax refund process. Basically he has taken out a standard PRSA with Zurich through a broker and made a one off AVC contribution for 2019, as he is nearing retirement. He's forwarded on some documents they have supplied, one being the PRSA 2 AVC Cert.

    I have access to his revenue myAccount, and I can see under 'Add Credits' there's a section for AVC under your job. Is it as simple as inputting the lump sum contribution in this section?. It does state 'Employment where superannuation fund is held', which I was wondering about as the PRSA he has taken out is seperate to the Employer's (public service) I assume. But is that there for tax calculation purposes?

    Also, i thought I read somewhere you need to send the AVC cert to revenue. So just wondering is there another section or form that i should be using rather than through myAccount option.

    Appreciate any guidance.


  • Options
    #17
    cmac2009
    Registered Users Posts: 1,378 ✭✭✭cmac2009


    cmac2009 wrote: »
    Apologies for pulling up an old thread but I have a similar query as above.

    I've been roped into completing a tax return for my dad, and I don't live in Ireland so not overly familiar with the pension tax refund process. Basically he has taken out a standard PRSA with Zurich through a broker and made a one off AVC contribution for 2019, as he is nearing retirement. He's forwarded on some documents they have supplied, one being the PRSA 2 AVC Cert.

    I have access to his revenue myAccount, and I can see under 'Add Credits' there's a section for AVC under your job. Is it as simple as inputting the lump sum contribution in this section?. It does state 'Employment where superannuation fund is held', which I was wondering about as the PRSA he has taken out is seperate to the Employer's (public service) I assume. But is that there for tax calculation purposes?

    Also, i thought I read somewhere you need to send the AVC cert to revenue. So just wondering is there another section or form that i should be using rather than through myAccount option.

    Appreciate any guidance.

    Anyone?


  • Options
    #18
    y0ssar1an22
    Registered Users Posts: 16,177 ✭✭✭✭y0ssar1an22


    cmac2009 wrote: »
    Anyone?

    will let you know in the morning how to deal with this.


  • Options
    #19
    y0ssar1an22
    Registered Users Posts: 16,177 ✭✭✭✭y0ssar1an22


    select the AVC option, and enter the figure in:

    Amount of AVC paid by you in 2019 on which relief has not already been granted

    you select the employment as you only get tax relief based on a % of your net relevant earnings based on your age, for PAYE employees this is usually gross pay for PAYE/income tax.

    it could be worth splitting the AVC into 2019 and 2020. What you want to ensure is that you are getting tax relief @40%.

    hold onto the AVC cert, revenue may request it. you can upload it via my enquiries if you want.


  • Options
    #20
    cmac2009
    Registered Users Posts: 1,378 ✭✭✭cmac2009


    y0ssar1an22 wrote: »
    select the AVC option, and enter the figure in:

    Amount of AVC paid by you in 2019 on which relief has not already been granted

    you select the employment as you only get tax relief based on a % of your net relevant earnings based on your age, for PAYE employees this is usually gross pay for PAYE/income tax.

    it could be worth splitting the AVC into 2019 and 2020. What you want to ensure is that you are getting tax relief @40%.

    hold onto the AVC cert, revenue may request it. you can upload it via my enquiries if you want.

    Thanks y0sar, appreciate you taking the time to reply. Just two follow on questions -

    1) Basic question - 'Net relevant earnings' - on the box above his gross income is listed, is the net relevant earnings the same amount, as it states it's employment income less deductions, such as losses and capital allowances. None of which are applicable to him.

    2) You have mentioned splitting across tax years, is this possible even though the policy commencement date and one off contribution was in 2019?.

    thanks again.


  • Options
    #21
    y0ssar1an22
    Registered Users Posts: 16,177 ✭✭✭✭y0ssar1an22


    cmac2009 wrote: »
    Thanks y0sar, appreciate you taking the time to reply. Just two follow on questions -

    1) Basic question - 'Net relevant earnings' - on the box above his gross income is listed, is the net relevant earnings the same amount, as it states it's employment income less deductions, such as losses and capital allowances. None of which are applicable to him.

    2) You have mentioned splitting across tax years, is this possible even though the policy commencement date and one off contribution was in 2019?.

    thanks again.

    1. if just p60 income use, use the figure for 'gross income for income tax', or something to that effect.

    2. if there is a document that specifies the AVC relates to 2019 you're probably restricted. Your dads pension advisor would probably have taken this into account, to get max relief.

    one way to know: when you input the AVC figure, if the PAYE due reduced by 40% he is getting max tax relief. say AVC of €1000, should reduce PAYE by €400.


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    #22
    cmac2009
    Registered Users Posts: 1,378 ✭✭✭cmac2009


    y0ssar1an22 wrote: »
    1. if just p60 income use, use the figure for 'gross income for income tax', or something to that effect.

    2. if there is a document that specifies the AVC relates to 2019 you're probably restricted. Your dads pension advisor would probably have taken this into account, to get max relief.

    one way to know: when you input the AVC figure, if the PAYE due reduced by 40% he is getting max tax relief. say AVC of €1000, should reduce PAYE by €400.

    thanks again.


  • Options
    #23
    jive
    Registered Users Posts: 5,762 ✭✭✭jive


    cmac2009 wrote: »
    Apologies for pulling up an old thread but I have a similar query as above.

    I've been roped into completing a tax return for my dad, and I don't live in Ireland so not overly familiar with the pension tax refund process. Basically he has taken out a standard PRSA with Zurich through a broker and made a one off AVC contribution for 2019, as he is nearing retirement. He's forwarded on some documents they have supplied, one being the PRSA 2 AVC Cert.

    I have access to his revenue myAccount, and I can see under 'Add Credits' there's a section for AVC under your job. Is it as simple as inputting the lump sum contribution in this section?.

    Also, i thought I read somewhere you need to send the AVC cert to revenue. So just wondering is there another section or form that i should be using rather than through myAccount option.

    Appreciate any guidance.

    Can anyone confirm the above? Is it is as simple as amending your 2019 and adding the AVC tax credit? Is the credit then applied on future income to make up the difference?

    Can't seem to find a clear answer online


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    #24
    jive
    Registered Users Posts: 5,762 ✭✭✭jive


    bump!


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    #25
    CiarraiAbu2
    Registered Users Posts: 582 ✭✭✭CiarraiAbu2


    jive wrote: »
    Can anyone confirm the above? Is it is as simple as amending your 2019 and adding the AVC tax credit? Is the credit then applied on future income to make up the difference?

    Can't seem to find a clear answer online

    The allowance is given for 2019 and the tax due will be reduced accordingly.


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