Thanks.Your joint total incomes are 112000 euro.
Your joint total 20% tax band is 84000 euro.
Jointly you have earnings of 28000 euro taxable @ 40%.
Any pension contributions made by either of you up to this amount (and within your age related yearly allowance) will get you tax relief at 40% (your marginal rate).
Depending on how you allocate your tax credits and bands between you, the tax relief for your wife might appear as 20% from her wages.
At the end of each tax year when you request a statement of liabilities the correct 40% tax relief will be calculated.
Your wife could get maximum 11000 euro at 40%. As in post #4.
You can't make AVCs based on your rental income. However the rental income means that you are paying 40% tax on a larger amount of income per year.I have rental income and OH get's overtime however don't believe either of those impact on pension contributions.
Thanks again.You can't make AVCs based on your rental income. However the rental income means that you are paying 40% tax on a larger amount of income per year.
This could allow you to make larger AVCs relieved at 40%.
This would still be limited to 25% of your pensionable employment income.
Your wife could include her overtime earnings when calculating her maximum 25% allowable tax relieved AVCs.
You can set it up between now and October 31st.Apologies for hijacking the thread but is it possible to set up a new PRSA and make a contribution for 2023 before October? Or does the fund need to be created in 2023 also?
Apologies for hijacking the thread but is it possible to set up a new PRSA and make a contribution for 2023 before October? Or does the fund need to be created in 2023 also?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?