Claiming Pension Relief after switching job

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FeteFunt

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Hoping someone can help with claiming tax relief for 2023 pension. I'm utterly lost.

  • Background - I'm 33 and entitled to 20% relief on contributions based on age
  • I used to work for a bank back in 2022. That bank paid me money directly to pay into my own long standing pension fund. I was my only pension and I claimed my tax back just fine for 2022
  • I moved jobs in March of 2023, and was enrolled in the new jobs pension scheme in June, which sees me pay 5% of my income into that company scheme. This is not taxed as it's done directly through payroll, so no relief required on that.
  • The remaining 15% I continue to pay into my previous pension after being paid. This is taxed, and this is the relief I'm trying to pay back. Revenue website states that this is allowed - relief can be paid on multiple pensions provided the total is under your relief allowance (20%).
  • On the Revenue site, I don't know whether it's the PSRA section or the AVC section I am supposed to use. Regardless of which I select, they both ask which employment the pension relates to.
    • On The PSRA version I am also asked if I'm part of a pre-approved pension scheme (I assume it's referring to my work pension scheme) so I select yes and then am told I'm not entitled to this kind of relief.
    • The AVC version doesn't ask this question. I think this is the correct form but I'm not sure.
  • Regardless, selecting either of the two employments (can't pick both) brings up the total I earned for the year for just that employment, which feels to me like it would therefore only count that figure as the total income to grant relief on.
  • It also presumably won't take into account that I also made contributions of 5% that already received relief from June onwards.
  • It feels like a mess to work out and I'm unsure where to start

TLDR: I am very confused on how to claim back relief on pension contributions when I switched job halfway through the year. Any guidance would be amazing.
 
Can you clarify please...

You were not part of the bank's pension scheme. You paid into a PRSA yourself and claimed tax relief yourself. Correct?

What type of pension scheme are you in now? An Occupational Pension Scheme or a PRSA?
 
Dave Vanian said:
Can you clarify please...

You were not part of the bank's pension scheme. You paid into a PRSA yourself and claimed tax relief yourself. Correct?

What type of pension scheme are you in now? An Occupational Pension Scheme or a PRSA?
Click to expand...
Thanks for the response.

So I opened a pension with a previous job years ago (PSRA with Zurich), and kept paying into that pension when I moved into another job, and have always claimed relief at the end of the year. Now in my new job I pay 5% into a new pension (the company pension which I assume is an occupational pension scheme, I’m honestly bad at definitions), while continuing to pay some money into my older pension.
 
Okay since June 2023 you should not have continued to pay into your PRSA. Your additional 15% should have been paid as an AVC into your company's pension scheme, or into an AVC PRSA of your own choosing. Talk to your broker. They might be able to convince Zurich Life to rewind contributions since June 2023 and transfer them into an AVC PRSA. Then you'd be able to claim tax relief on them.
 
Dave Vanian said:
Okay since June 2023 you should not have continued to pay into your PRSA. Your additional 15% should have been paid as an AVC into your company's pension scheme, or into an AVC PRSA of your own choosing. Talk to your broker. They might be able to convince Zurich Life to rewind contributions since June 2023 and transfer them into an AVC PRSA. Then you'd be able to claim tax relief on them.
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Why is that? What is the difference between my original PSRA or an “AVC PSRA of my own choosing”?
 
FeteFunt said:
Why is that? What is the difference between my original PSRA or an “AVC PSRA of my own choosing”?
Click to expand...

Pension regulations and Revenue rules is why. Two different sets of rules depending on whether you're a member of an Occupational Pension Scheme or you're not. In the past, you weren't. Now you are. Now, any additional pension contributions must be either to an AVC or an AVC PRSA. This is effectively an extension of your benefits in the Occupational Pension Scheme. You must retire the AVC PRSA and the Occupational Pension Scheme at the same time and your benefits will be calculated based on the addition of the two funds.
 
Thanks again for the answers. A few questions.

How do you know it’s not a PSRA AVC? I’m not disputing it, but I just can’t tell myself.

A PSRA still qualifies for tax relief from what I have read. Is that not the case?

So in my scenario:
My original pension (Pension A) was set up via a broker where I worked in Job A and Job A paid directly into it through my salary. I then left and went to job B and Job B (the bank) paid me money to put into that same pension myself (but didn’t pay it directly via my salary), I then left and went to my most recent job (Job C) which has a separate occupational scheme I’m part of (Pension B). So when I left Job B I should have stopped paying into Pension A and solely paid all 20% into Pension B?
 
FeteFunt said:
How do you know it’s not a PSRA AVC? I’m not disputing it, but I just can’t tell myself.
Click to expand...

An AVC PRSA is a separate and different product to a PRSA. You would specifically have had to start an AVC PRSA in June 2023. From your posts, it doesn't sound like you did. The policy documents and statements on an AVC PRSA will say AVC PRSA on them.

FeteFunt said:
A PSRA still qualifies for tax relief from what I have read. Is that not the case?
Click to expand...

Not if you are an active member of an Occupational Pension Scheme and this employment C is your only source of earned income.

FeteFunt said:
So when I left Job B I should have stopped paying into Pension A and solely paid all 20% into Pension B?
Click to expand...

When you left Job B, you should have stopped paying into your PRSA and either (i) contributed AVCs to your current employer's Occupational Pension Scheme or (ii) started an AVC PRSA with a provider of your choice.
 
I think I understand now. Thank you both. Really appreciate it.

I’m hoping I do have the option to make that change to a PSRA AVC in that case, and claim the relief back. Otherwise that’s a year and half worth of tax relief lost.
 
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