I recently completed my 2022 IT return through myAccount (PAYE only) and the allowable IT relief for my AVC lumpsum was reduced by the Bike to work (B2W) scheme.
I'll round the numbers for simplicity but as below, the employment detail summary (EDS) reads as:
Gross Pay: € 80,000
Pay for IT: € 70,750
The Pay for IT is reduced by the €8k regular pension contribution and the €1250 B2W scheme. I then tried to make an AVC lumpsum of another €8k (20% age limit) expecting €3,200 tax relief but instead the P21 shows €3,100 refund due.
I assumed my age related tax relief was based on my gross income as per the EDS and would be in parrallel to the relief for bike to work. However, Revenue have used Gross pay less B2W (€78,750) to calculate the tax relief limit as €15,750 instead of €16,000. I then missed out on 40% relief on that €250 so thats the €100 difference above.
Am I right to use Gross Pay or are revenue correct?
I'll round the numbers for simplicity but as below, the employment detail summary (EDS) reads as:
Gross Pay: € 80,000
Pay for IT: € 70,750
The Pay for IT is reduced by the €8k regular pension contribution and the €1250 B2W scheme. I then tried to make an AVC lumpsum of another €8k (20% age limit) expecting €3,200 tax relief but instead the P21 shows €3,100 refund due.
I assumed my age related tax relief was based on my gross income as per the EDS and would be in parrallel to the relief for bike to work. However, Revenue have used Gross pay less B2W (€78,750) to calculate the tax relief limit as €15,750 instead of €16,000. I then missed out on 40% relief on that €250 so thats the €100 difference above.
Am I right to use Gross Pay or are revenue correct?