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Workplace pension scheme - limits for tax relief

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  • 11-08-2020 11:22am
    #1
    bigmc23
    Registered Users Posts: 261 ✭✭


    Hi folks, i was wondering if anyone knew if employers contributions counted towards the contribution limits for tax relief? I have read different things online. I am 32 so my contribution limit would be 20% of my earnings . My ee pays in 5% and I 3% but considering making some AVCs up to the point that my tax relief cut off. Thanks in advance !


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    #2
    lulut
    Registered Users Posts: 45 ✭lulut


    If it is a defined contribution plan the 20% does not include the employers contribution


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    #3
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,644 Mod ✭✭✭✭Henry Ford III


    Your max. contribution for tax purposes is 20%. What your employer pays on top of that isn't considered for your income tax relief.


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    #4
    Tar.Aldarion
    Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 60,086 Mod ✭✭✭✭Tar.Aldarion


    bigmc23 wrote: »
    Hi folks, i was wondering if anyone knew if employers contributions counted towards the contribution limits for tax relief? I have read different things online. I am 32 so my contribution limit would be 20% of my earnings . My ee pays in 5% and I 3% but considering making some AVCs up to the point that my tax relief cut off. Thanks in advance !

    What the others said, but I do believe there is some leeway for overpayment now too since you haven't been paying the max. Would have to look up the specifics. But yes 20+their 5 in general is fine.


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    #5
    bigmc23
    Registered Users Posts: 261 ✭✭bigmc23


    Thanks everyone , much appreciated


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