# Making AVC before Oct 31st - can I include TY 2005?



## YouNeek (23 Oct 2006)

Hi,

I'm currently not maximising my AVC contributions for my age bracket.

I'd like to top them up to the full allowable % of my salary, so I'm planning on making a lump sum contribution, prior to Oct 31st. (I'm a PAYE employee.)

In terms of claiming tax relief on this lump sum:

- Can I retrospectively pay a lump sum for 2005, and claim tax relief on the amount?
- Or can I only pay in a lump sum from Jan 2006 to date?

Thanks for any advice.


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## ClubMan (23 Oct 2006)

YouNeek said:


> - Can I retrospectively pay a lump sum for 2005, and claim tax relief on the amount?


Yes:

October 31 - what does it mean for PAYE worker?
The significance of 31 October

Don't forget to also claim PRSI relief:

Claiming PRSI relief on standalone PRSA contribution


> - Or can I only pay in a lump sum from Jan 2006 to date?


 You can do that as well or you can do it any time before October 31st 2007.


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## YouNeek (24 Oct 2006)

Thanks for that ClubMan.

Given that I'm in an occupational scheme, can I just make the contributions through payroll as normal, prior to Oct 31st '06, in respect of 2005?

It can be a slow process (matter of weeks) to make changes pension contributions - if the contribution is not made by Oct 31st, can I claim the relief anyway?


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## ClubMan (24 Oct 2006)

YouNeek said:


> Given that I'm in an occupational scheme, can I just make the contributions through payroll as normal, prior to Oct 31st '06, in respect of 2005?


You'd need to ask your employer.


> It can be a slow process (matter of weeks) to make changes pension contributions - if the contribution is not made by Oct 31st, can I claim the relief anyway?


No - the contribution must be lodged before the deadline to qualify for "backdated" relief against 2005 income otherwise it will be set against 2006 income.


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## GreatDane (24 Oct 2006)

Hi

While the contribution must be made prior to the 31st Oct'06, can it be allocated after that date, so if you have many AVC options you can get the dosh into the Trustees before 31st Oct'06 but you can take a few days after this date to decide on how it's invested etc ?

Thanks

G>


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## ClubMan (24 Oct 2006)

Not sure about that.


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## asdfg (24 Oct 2006)

My understanding is that you have to get a cert from the underwriters of the scheme (insurance company) as proof that you have lodged your money with them. You then get the cert to revenue prior to 31/10. Some revenue areas allow the cert date as proof of payment some don't so you need to get the cert in as quickly as possible.


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## Guest126 (24 Oct 2006)

Why not just put it in Cash (or equivalent) Fund NOW and then you can take your time to think about switching it after?


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## GreatDane (25 Oct 2006)

CapitalCCC said:


> Why not just put it in Cash (or equivalent) Fund NOW and then you can take your time to think about switching it after?


 
Hi, Yes thats basically what I meant above, assume it's OK to do this ?

Cheers

G>


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## Guest126 (25 Oct 2006)

Of course - if it is a pension contribution then it's a pension contribution - Revenue do not care what fund it goes in and if you subsequently transfer it to a different fund.


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## onekeano (25 Oct 2006)

ClubMan said:


> Yes:
> 
> Don't forget to also claim PRSI relief: .......................................
> You can do that as well or you can do it any time before October 31st 2007.



Clubman - can you claim the PRSI relief regardless of salary? eg. if you earn in excess of the PRSI limit (circa 44k I think) can you get the extra 6% back on your AVCs?

Thanks
Roy


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## Guest126 (26 Oct 2006)

No just 2% on earnings over the PRSI cut-off...this has been very well discussed!


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## onekeano (26 Oct 2006)

CapitalCCC said:


> No just 2% on earnings over the PRSI cut-off...this has been very well discussed!



ouch - sorry for asking.... it's actually not so easy to cover every thread in every forum  in great detail. Thanks for clarifying anyway.

Roy


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## Guest126 (26 Oct 2006)

No need to say sorry...I was not having a go...I made the remark because it was such a contentious issue!!


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## onekeano (26 Oct 2006)

CapitalCCC said:


> No need to say sorry...I was not having a go...I made the remark because it was such a contentious issue!!



Ok thanks CCC - have it in hand now so appreiciate the clarification.

Roy


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## phildevan (4 Nov 2006)

will a pension provider accept an avc after the 31/10 deadline


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## extopia (4 Nov 2006)

You can make AVC's anytime you want. However it will not be deductible against your 2005 tax bill after Oct 31st. (Not sure of the position re the Pay and File deadline of Nov 16th).


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## phildevan (4 Nov 2006)

thanks..it with regard to the pay and file deadline i was wondering(for 2005 taxes)


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