AVC contribution for tax year 2004

From the FAQ section:

"What’s the significance of 31 October for AVCs ?
If you make an AVC (strictly speaking, a special employee contribution) on or before 31 October and choose to designate it as backdated to the previous tax year, you will be eligible to claim a refund of tax paid for the previous tax year."

My question is if you do make an AVC contribution for 2004 by Oct 31 2005 when would you expect to get the tax refund?

In my experience it will be processed within a few weeks of the October 31st deadline and submission of the relevant details but it depends on how busy Revenue are at the time. I normally just write a letter including details of the contribution, noting that it is in respect of the previous year and including a copy of my P60 for that year. Don't forget that you can also claim PRSI/health levy relief too (not just on PRSAs).

Thanks Clubman - I didnt know about the PRSI !

Kelmar said:

Thanks Clubman - I didnt know about the PRSI !

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It's only a recent change and only applies to the last few tax years. The other thread has all the details.

If you pay AND file through ROS then you can make the AVC by the ROS deadline and have it set back. The ROS deadline is 17 November 2005.

Isn't ROS only for self employed/businesses and not employees?

ROS was due to be rolled out to employees, technically people who are not "assessable persons". Assessable persons are those obliged to file income tax returns and pay preliminary tax. They file the Form 11 income tax return and get a notice of assessment back.

Non-assessable persons would file a Form 12 income tax return where they want to claim medical expenses or have nominal other income (over approx €3k non-PAYE income you become an assessable person) - the €3k approx threshold is a Revenue rule of thumb so hard to establish exact figure. A Form 12 filer gets a balancing statement, called P21, back.

Form 12 is like Form 11 except less detailed.

Form 12's were supposed to be on ROS by now but wont be until next year.

I think you can elect to be an assessable person so if Form 12 filer normally and missed 31 October deadline you could probably squeeze through by the ROS deadline where you elect to be an assessable person.

Thanks for that info.

Betsy Og said:

Non-assessable persons would file a Form 12 income tax return where they want to claim medical expenses or have nominal other income (over approx €3k non-PAYE income you become an assessable person) - the €3k approx threshold is a Revenue rule of thumb so hard to establish exact figure. A Form 12 filer gets a balancing statement, called P21, back.

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Just for the record, I'm PAYE and when I have adjustments to make or tax to claim back I usually just write to Revenue with the details rather than filing a Form 12 or any other form and they have always dealt with it on that basis.

I was at a talk last night and they were talking about tax returns and "assessable persons" as an aside.

The expert opinion was that if someone with PAYE income has a holiday home in Spain (which 30,000 people in Munster are reckoned by some to have) and they are in receipt of rent, tey need now to file a return whether or not the net rent after expenses is a profit.

That raised a few eyebrows.

theres a whole raft of new "disclosure" after coming in.

i.e. boxes on the form to fill if you are claiming any property related reliefs e.g. section 23 or capital allowances (although these should have been evident from the comp anyway).

Also asked about exempt stallion fees so they can quantify how much all these reliefs cost - I reckon there could be a bit of underdisclosure on that one , especially as doesnt currently have a tax impact but looks as if shortly will.

Is Bush to blame for the new absolutist views sweeping the world? - the "with us or against us" syndrome. We now must throw the baby out with the bathwater as the EU want stallion fees exemption gone. Why not relieve the first 100k and tax the rest, wouldnt that keep the small punter going and get a fair return out of the uber rich. But sure commonsense is always at a premium !!