PRSA tax return question? Which years tax return does the contribution count towards?

J

jwof2006

Registered User
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Hi all,

Last year I opened a PRSA and made a 10,000 euro lump sump deposit on the 01/10/2022. I then wanted to start monthly payments but Zurich said I couldn't as I was paid up until the 01/10/2023.

Anyway I am now swapping to monthly contributions of 800 euro from the 01/10/2023.
My question is- does my payment of 10,000 euro last year count for my 2022 or 2023 tax return? I would have thought 2022, but because the payments seems to have been for 2023 I'm not sure if this is how it will work.

I want to make sure I get the tax relief I am owed. I guess the problem is if it counted for 2022, my payments for 2023 will be very low, as I haven't been contributing over the course of this year. Can I make another lump payment to increase this years contributions?

I never got a PRSA statment or anything from Zurich, can I request this from them for last year and this year?

Thanks,

Jack
 
Any payment up to 31st October can be claimed in the previous year for tax relief.
Your initial 10,000 euro could be claimed for 2021.
You can maximize your claim for 2022, up to your age limited tax free amount, provided you make the payments by 31st October 2023.
Any payments after October can be claimed for in tax year 2023.
 
Last edited:
Thanks S class.

Some great info there. I did not know I could use that payment in 2022 towards 2021! Is this always the case going forward? Do I need to send a PRSA certificate to Revenue so they know what my contributions are or do they have all this information already.

Thanks,
Jack
 
jwof2006 said:
I did not know I could use that payment in 2022 towards 2021! Is this always the case going forward?
Click to expand...
That's always been the case and will continue to be the case until/unless the rules are changed. But it becomes moot if one maximises contributions up to the relevant age related tax relief level for each year.
 
jwof2006 said:
Last year I opened a PRSA and made a 10,000 euro lump sump deposit on the 01/10/2022. I then wanted to start monthly payments but Zurich said I couldn't as I was paid up until the 01/10/2023.
Click to expand...
Hi,
I think from your posting history you changed jobs in 2022? Is that part of the problem, was the PRSA set up for your new job?
 
Contributions are claimed in the year they are paid. In certain cases you can elect to backdate to prior year.

The initial 10k can’t now be elected as a 2021 contribution. It must be done before filing the 2021 tax return.

The source of earnings must also be considered
 
jwof2006 said:
Do I need to send a PRSA certificate to Revenue so they know what my contributions are or do they have all this information already.
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You only need to send the PRSA cert to revenue if they request it. Keep all the certs in case revenue makes a future request.
 
Oisin19 said:
Contributions are claimed in the year they are paid. In certain cases you can elect to backdate to prior year.

The initial 10k can’t now be elected as a 2021 contribution. It must be done before filing the 2021 tax return.

The source of earnings must also be considered
Click to expand...
Thank Oisin19. So would it be best to list the contribution in the 2022 Tax return? I presume the tax credits are then applied over the course of the following year? So if it is included in the 2022 Tax Return by the 31st of October 2023, they will apply for the 2024 tax year right? The source of earnings can be linked to PAYE employment.

Kicking myself now for not including it in the 2021 Tax Return last October.. I guess I will hold off on making a lump sump deposit this year before the 31st of October so, as it will exceed exceed my age related tax relief that can be claimed if I do, and I will put the lump sum towards savings for a house deposit instead...

Go raibh maith agaibh
 
jwof2006 said:
Hi all,

Last year I opened a PRSA and made a 10,000 euro lump sump deposit on the 01/10/2022. I then wanted to start monthly payments but Zurich said I couldn't as I was paid up until the 01/10/2023.
Click to expand...
This doesn't make sense to me. Why would the stop you contributing? Even if you contribute more than your age related tax relief limit? (I'm not suggesting that you should do this, by the way). It's no skin off their nose.
 
jwof2006 said:
Hi RedOnion, No it is one that I set up myself.
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Yes, but that doesn't mean you can do what you like.
If for example you changed jobs mid year, and your previous employment had an occupational pension, you can't just lump money into a stand alone PRSA after you've left and get tax relief on it.
If Zurich said you'd paid up for the year, they must have had some basis for calculating that.
 
ClubMan said:
This doesn't make sense to me. Why would the stop you contributing? Even if you contribute more than your age related tax relief limit? (I'm not suggesting that you should do this, by the way). It's no skin off their nose.
Click to expand...
Not sure ClubMan. Definitey was told I had to wait until now to change my contribution frequency anway.
 
RedOnion said:
Yes, but that doesn't mean you can do what you like.
If for example you changed jobs mid year, and your previous employment had an occupational pension, you can't just lump money into a stand alone PRSA after you've left and get tax relief on it.
If Zurich said you'd paid up for the year, they must have had some basis for calculating that.
Click to expand...
This was my first time every contributing to any sort of pension. Could that 10,000 euro contributed on the 01/10/22 be used towards my 2022 tax return? Thanks
 
S class said:
You only need to send the PRSA cert to revenue if they request it. Keep all the certs in case revenue makes a future request.
Click to expand...
My Account on Revenue has changed this year. For PAYE My Account customers uploading of the cert on claiming the relief is currently mandatory. I tried it only last week and it won’t let me through without a cert. Seemingly its a change that even some sections of Revenue were not aware of.

Fingers crossed it’s reversed in time for the pay and file deadlines.
 
Smoneen said:
My Account on Revenue has changed this year. For PAYE My Account customers uploading of the cert on claiming the relief is currently mandatory. I tried it only last week and it won’t let me through without a cert. Seemingly its a change that even some sections of Revenue were not aware of.

Fingers crossed it’s reversed in time for the pay and file deadlines.
Click to expand...

Have you anything from Revenue confirming that they have formally changed this? I'm wondering (hopefully) if it was just a temporary glitch in the system when you tried it...
 
Yes. Two industry bodies in contact with Revenue in relation to this in the past few days also.
 
It's not a glitch.

As it stands at the moment there are going to be a lot of disappointed people who leave it late or can't get a Certificate to upload by the deadline date.

With the way service has been and the usual spike in business this time of the year it's not looking good.

The move might be reversed or some other accommodation made but I'd be sorting it out earlier this year if I was doing an AVC.

Gerard

www.prsa.ie
 
When the tax return asks what -"Employment the PRSA relates to?" What should I enter if I want it to apply to all PAYE income/employments in that given year. It only's seems to allow me to select one. Thanks
 
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