Karl Grabe
Registered User
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How is the new PS pension levy calculated? X% of gross taken before or after tax is is applied?
http://fergablog.blogspot.com/2009/02/public-service-pension-levy.html
Sorry I am not au fait with the micro effects of the levy. Is this any help?
Sorry to hijack the original thread but you guys seem to know your stuff. Has anyone a link to a definitive answer as to whether or not the levy will be pasrt of a person's age-related limits for tax relief?
Agreed, I doubt they know. I've looked for clarification in everything published so far but have found nothing, so have drawn it to the attention of my union as a technical issue which needs to be examined.I doubt the know them selves. It is a "pension-related deduction which will apply to the total earning of all public servants." I doubt there are going to may PSs who (even with AVCS) are going to exceed their age band or the maximum pension contribution limit. So far the only semi official notification I have received about the Pension Levy is from Revenue, stating that it has nothing to do with them and the Dept of Finance are in charge of its implementation. They better get their fingers out soon, time is ticking….
That's not actually the issue - it's the maximum tax relief as a percentage as earnings, which is established under Revenue rules. It's as follows:This calculator from the Department of Finace Website implies relief is given at the higher rate (should you be that lucky to earn enough!)
Tax relief calculations take account of age related limits on tax relief in any given year as prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. The maximum tax relief as a % of earnings are as follows:
- Under 30: 15%
- 30 to 39: 20%
- 40 to 49: 25%
- 50 to 54: 30%
- 55 to 59: 35%
- 60 and over: 40%
Is there any on-line calculator available to calculate how much this amounts to? The link to the calculator on the finance site seems to be gone?