I was not paying into a pension scheme in 2006, and want to make an AVC contribution before end of the month to claim the tax benefit for 2006. I just want to make sure I use the right figure before I make the contribution.
In 2006, I paid marginal rate tax on Eur 7400, which is a total of Eur 3107 tax paid (42%).
As far as I can see, in order to maximise the tax benefit, I should make an AVC of Eur 4292 (7400-3107) in order to recoup all of the higher rate tax paid.
Am I correct ? Do I need to factor PRSI into the calculation, and if so, how ?
Thanks, JR
In 2006, I paid marginal rate tax on Eur 7400, which is a total of Eur 3107 tax paid (42%).
As far as I can see, in order to maximise the tax benefit, I should make an AVC of Eur 4292 (7400-3107) in order to recoup all of the higher rate tax paid.
Am I correct ? Do I need to factor PRSI into the calculation, and if so, how ?
Thanks, JR