Month: October 2018

by admin admin No Comments

Getting tax back on your Pension Lump Sum

As the October 31st tax deadline races towards us, you may want to consider topping up your pension, as this is the deadline for claiming any tax relief this amount for the 2017 tax year.

You can make lump sum payments to your private pension or an AVC (Additional Voluntary Contribution) to your occupational pension.

If you ‘top up’ your pension by 31st October 2018, you are entitled to claim tax relief on that ‘top up’ amount against the tax paid in 2017.

Let us show you an example;

Ann ‘tops up’ her pension €1,000
Ann claims tax relief on €1,000 @ her marginal rate (40%) €400

In the above example, Ann has ‘topped up’ her pension by €1,000 but the real cost to her was €600 as she claimed back €400 tax relief.

Remember

Your pension ‘top-up’ needs to be paid by 31st October and your return completed.

 

Should you have any queries on this issue, please contact us on 01 5397999 or request our application form here

Top