Income continuance Cornmarket and Revenue

Bananaleaf · 07-01-2021 2:41pm #1

Hi all

Do we need to claim via revenue on Income Continuance that we pay to Cornmarket (I know, I know) or have they done that for us?

Thanks

Geuze · 07-01-2021 4:30pm

Bananaleaf wrote: »

Hi all

Do we need to claim via revenue on Income Continuance that we pay to Cornmarket (I know, I know) or have they done that for us?

Thanks

If your premium is deducted at source through your payslip, then tax relief is given at source, in your pay.

Ciano35 · 07-01-2021 4:52pm

Geuze wrote: »

If your premium is deducted at source through your payslip, then tax relief is given at source, in your pay.

I presume this is the same for AVC’s deducted at source?

Bananaleaf · 07-01-2021 6:43pm

Thanks, yes deducted at source so I don't have to do anything. Thought as much but just wanted to check.

Yes must be the same for AVC so

One More Toy · 07-01-2021 6:45pm

Bananaleaf wrote: »

Thanks, yes deducted at source so I don't have to do anything. Thought as much but just wanted to check.

Yes must be the same for AVC so

Yes for income protection

No for avcs - not deducted at source so have to claim for them each year as far as I know. I did it for a teacher friend each year

Bananaleaf · 07-01-2021 7:00pm

One More Toy wrote: »

Yes for income protection

No for avcs - not deducted at source so have to claim for them each year as far as I know. I did it for a teacher friend each year

Oh sorry, actually you are right to say that it could be no.

There are different types. If you are an eegit and you've gone with Cornmarket like me, they do it for you.

One More Toy · 07-01-2021 7:22pm

Bananaleaf wrote: »

Oh sorry, actually you are right to say that it could be no.

There are different types. If you are an eegit and you've gone with Cornmarket like me, they do it for you.

My friends with cornmarket too and her avc isn't deducted at source, it's a direct debit each month. I log in and take a screenshot each year of the amount paid, email revenue and they add it to your tax file where you can then claim a balancing statement.

As far as I know you have to go with cornmarket for the public service avcs but could be wrong

Geuze · 07-01-2021 8:36pm

One More Toy wrote: »

As far as I know you have to go with cornmarket for the public service avcs but could be wrong

Any public servant is free to get an AVC from any provider.

Here are low cost PRSA-AVC, but with no advice:

https://www.labrokers.ie/prsa-pensions/

What Cornmarket offer is payroll deduction, the other providers don't seem to have agreements with the DES.

Note that I recall years ago that there was a hidden charge for the payroll deduction.

Bananaleaf · 07-01-2021 10:20pm

Geuze wrote: »

Any public servant is free to get an AVC from any provider.

Here are low cost PRSA-AVC, but with no advice:

https://www.labrokers.ie/prsa-pensions/

What Cornmarket offer is payroll deduction, the other providers don't seem to have agreements with the DES.

Note that I recall years ago that there was a hidden charge for the payroll deduction.

In my experience the charge wasn't hidden. I was told about it. There was a charge though. I do believe there used to be a yearly charge but not anymore or at least not at the time I got one. They took a fair whack after year one and it was 0% from there on in

Treppen · 07-01-2021 11:07pm

Bananaleaf wrote: »

In my experience the charge wasn't hidden. I was told about it. There was a charge though. I do believe there used to be a yearly charge but not anymore or at least not at the time I got one. They took a fair whack after year one and it was 0% from there on in

Not sure which charge you're referring to. Are you saying you pay zero charges on your contributions and fund management every year?

This is a very old article (2005) but lets you know that Cornmarket aren't the only kid in town anymore.

Irish Life levies a 5 per cent charge on the AVCs contributed and an annual management charge of 1 per cent of the value of the AVC fund. These charges are in line with the maximum charges insurance companies are allowed to impose on standard PRSA customers.

But Cornmarket also charges customers a further 1 per cent for deducting the contributions through payroll and passing them on to Irish Life.

It then levies an additional flat rate consultancy fee, which it does not seek from customers up front but deducts from workers' contributions over the first year of membership.

In the case of the nurses' AVC scheme, this consultancy fee is €835. If member nurses wish to top up their existing contributions, they may be charged a consultancy fee of €417.50 for any advice given.

mtoutlemonde · 07-01-2021 11:18pm

Bananaleaf wrote: »

In my experience the charge wasn't hidden. I was told about it. There was a charge though. I do believe there used to be a yearly charge but not anymore or at least not at the time I got one. They took a fair whack after year one and it was 0% from there on in

I think it costs ~€600 to set up so maybe that's the charge.

While I'm in this thread - I was speaking to Cornmarket a few weeks ago re AVCs. I was going to take one out but friend with financial planning background told me they are not as good as painted - any advice? Just for context- come retirement I probably wouldn't be far off full years service. Should I take one out now or wait a few years? Are Cornmarket the best?

Treppen · 08-01-2021 12:44am

mtoutlemonde wrote: »

I think it costs ~€600 to set up so maybe that's the charge.

While I'm in this thread - I was speaking to Cornmarket a few weeks ago re AVCs. I was going to take one out but friend with financial planning background told me they are not as good as painted - any advice? Just for context- come retirement I probably wouldn't be far off full years service. Should I take one out now or wait a few years? Are Cornmarket the best?

Dont forget Cornmarket are just brokers, like any other. There's different funds you can choose.

Treppen · 08-01-2021 12:48am

Bananaleaf wrote: »

In my experience the charge wasn't hidden. I was told about it. There was a charge though. I do believe there used to be a yearly charge but not anymore or at least not at the time I got one. They took a fair whack after year one and it was 0% from there on in

Ahh ok I see, they have their charges here. What do you think of this Geuze?

Regular Paycheque Deductions you pay 0%

Premium contribution I'm assuming is a lump sum installment, that's 4%

Annual management Charge is 1%

https://cornmarket.cdn.prismic.io/cornmarket%2F9664aa53-335c-47e3-b5af-deca11cb6534_14010+avc+charges+statement+-+irish+life+multi_11-18_form.pdf

Cornmarket_Charges.PNG

Geuze · 08-01-2021 1:02am

I was specifically referring to a charge for the payroll deduction, not any other charge.

Geuze · 08-01-2021 1:08am

Personally, I would not be willing to pay 595 for the initial set-up.

However, lest I be accused of being unfair, I must say that Cornmarket are in the business a long time, they will meet up with you, they will call to your house, they will give advice.

As long as you realise that you are paying 595 for that initial set-up.

The Cornmarket agent drove into our driveway in a car we could never afford.

They earn 30% net profit margins.

Fair play to them, but I am unwilling to pay for that.

I must also acknowledge that their fees are more transparent these days: at least you now know that you are paying 595, in the past the commission was buried in brutal opaque initial and accumulator units (don't ask).

The 1% AMC is also high, but that is not a Cornmarket issue, and 1% AMCs are fairly common.

Note that the insurer also pay Cornmarket out of the AMC, maybe 0.25%.

AMCs abroad are as low as 0.15%............

Bananaleaf · 08-01-2021 2:39am

Yes, charges as above.

I knew about the fees, including set-up. I also knew there were others I could go with that didn't have the set-up fee. Call me lazy, but when it came to doing all the tax stuff I was afraid of doing it wrong, so I just signed up. They take the fee out of your AVC at the end of year 1 so you don't miss it as such.

The policy itself is with Irish Life. As mentioned above, CM are just the broker

Geuze · 08-01-2021 2:12pm

Note that Irish Life own Cornmarket.

Always remember that when Cornmarket are suggesting which funds to choose.

One More Toy · 08-01-2021 3:09pm

My friend who I look after tax affairs for was certain she could only go with cornmarket, I never questioned it so thanks for the info

Treppen · 08-01-2021 5:27pm

One More Toy wrote: »

My friend who I look after tax affairs for was certain she could only go with cornmarket, I never questioned it so thanks for the info

Years ago they were the only game in town and had some agreement with the department. Open season now.

One More Toy · 08-01-2021 5:50pm

Treppen wrote: »

Years ago they were the only game in town and had some agreement with the department. Open season now.

That must've been it then

Income continuance Cornmarket and Revenue

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