How to claim pension relief

[cannco253]

Hi All

I'm trying to find out what I need to do to claim pension relief for contributions made in my 2019 tax return, and wasn't sure if I should post here or in the Tax forum.

I have a private PRSA I contribute to as my employer has no scheme in place.
When I log into MyAccount on the Revenue website I can't see any options where you can add private pension contributions in order to claim the tax back. The only option available is pension contributions through an employer. Am I missing something or do I need to register with ROS to be able to do this?

Also, how does Revenue refund the tax back? Is this a cash payment to a nominated account or is the tax code adjusted?

Many thanks

 

[GSheehy]

Claiming Tax Relief for Pension Contributions – PAYE employees

For any PAYE who makes personal contributions (outside of a salary deduction facility) to a Personal Pension, PRSA or AVC arrangement they can arrange their tax relief on MyAccount as follows:
1. Under PAYE Services select “Manage Your Tax 2020” (or relevant tax year)
2. You will now see an overview of your current employment. Under “Your current tax credits” select “Add new credits”.
3. A pop up box will appear – tick the check box & click ok
4. Under “Your Job” select “Show more”
5. “Select” the relevant product / pension arrangement i.e. Additional Voluntary Contributions, PRSA or Retirement Annuity relief (Personal Pension) & click next
6. Click Next
7. You will be prompted to claim any additional tax credits
8. You will be prompted to declare all income
9. You will now be able to review your claim
10. Once ready complete the declaration & submit.


Gerard

www.prsa.ie

 

[k06351000]

Thanks so much for this very helpful post.

Just want to ensure I am undertaking everything correctly
Revenue site is asking the following questions

Amount of AVC payable by you in 2021 on which relief has not already been granted- This is the total amount of the AVC I will contribute.

Amount of AVC contributions relieved under the net pay arrangement in 2021 - This is zero as nothing is been taken at source

Amount of ordinary contributions relieved under the net pay arrangement in 2021 - Not sure about this, is this asking for my total contribution to my defined benefit department of education pension(my only pension and the pension to which the AVC is linked)?

 

[fayf]

It may be more beneficial, cashflow wise, to claim for the PRSA contributions during the tax year in which they were made.

This can be done, by requesting this from Revenue via My Enquiries. So, if for example you are paying say 12k per annum, your tax credits are increased, and you get the tax relief every month.

Assuming the 12k is available at 40% tax relief, you will get an additional €400 per month in net pay per month, due to increased tax credits.
If you change the amount, just advise Revenue of the change.

When claiming, they may ask for an Employer letter confirming you are not contributing to an Employer Pension Scheme.

Of couse, the option is always there to claim after the tax year end. I just found it better for cashflow to claim- as i pay.

 

[GSheehy]

Amount of ordinary contributions relieved under the net pay arrangement in 2021 - Not sure about this, is this asking for my total contribution to my defined benefit department of education pension(my only pension and the pension to which the AVC is linked)?

Yes, it's (usually) the 5% (pension) + 1.5% (Spouse & Children) that's on your payslip.

You don't include ASC in this as it does not form part of the age related limits and can be ignored when determining the scope for an AVC.

Gerard

www.prsa.ie

 

[k06351000]

Yes, it's (usually) the 5% (pension) + 1.5% (Spouse & Children) that's on your payslip.

You don't include ASC in this as it does not form part of the age related limits and can be ignored when determining the scope for an AVC.

Gerard

Thanks, that’s perfect.
Well under the age related at the moment but hopeful to get closer in the future so good to know.

 

[HollowKnight]

Claiming Tax Relief for Pension Contributions – PAYE employees

For any PAYE who makes personal contributions (outside of a salary deduction facility) to a Personal Pension, PRSA or AVC arrangement they can arrange their tax relief on MyAccount as follows:
1. Under PAYE Services select “Manage Your Tax 2020” (or relevant tax year)
2. You will now see an overview of your current employment. Under “Your current tax credits” select “Add new credits”.
3. A pop up box will appear – tick the check box & click ok
4. Under “Your Job” select “Show more”
5. “Select” the relevant product / pension arrangement i.e. Additional Voluntary Contributions, PRSA or Retirement Annuity relief (Personal Pension) & click next
6. Click Next
7. You will be prompted to claim any additional tax credits
8. You will be prompted to declare all income
9. You will now be able to review your claim
10. Once ready complete the declaration & submit.


Gerard

www.prsa.ie

Sorry for dragging up an old thread!

I pay into a personal pension (RAC). The option is not on the Revenue site. What's the best place to input this?

 

[Smoneen]

@HollowKnight you should have an option for “Retirement Annuity Relief” under the Your Job heading, strange that you don’t have it but then i dont have a lot of the options that you have.

I’d probably give the Revenue helpline a quick call to see if they’d be happy for you to submit it under the PRSA menu. If there’s a particular reason the RAC menu is not available to you they might manually adjust your credits over the phone, you’d just need to have the relative info to hand for them.

 

[HollowKnight]

Thanks for that suggestion.