AVC - Best time of yr to make them

[test123]

I'm getting paid a bonus shortly & I thought that in order to minimise the tax I would pay on it, that I would make an AVC. My income would put me in the 42% tax bracket.
Is it true because it's early in the yr that I will only get 20% relief given that I haven't reached the high rate of tax yet?

 

[ClubMan]

I don't think that the timing of the contribution makes any difference to the tax relief. Even if you only got 20% relief now, if you ended up paying 42% tax on some income then you could claim additional relief in respect of the pension contributions. One reason to invest sooner rather than later is to have your pension contributions working for your earlier rather than later. Don't forget to also claim PRSI/health levy relief. The only other "timing" issue is the October 31st deadline which is the last date for making contributions in respect of the previous year's income in a situation in which full age related pension tax relief was not availed of in the preceding tax year.