Income limits, AVCs and non-PAYE income

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My employer's defined contribution occupational pension provider will allow me make one-off AVC contributions for 2018, outside of payroll. I want to maximise my pension contribution up to the relevant pensionable income limit, i.e. age-related % of €115k (I've already maximised my contributions for 2017.).

  1. My employer awarded me stock grants which vested in 2018, attracting income tax (which I sold on vesting, to avoid CGT). To my mind this is taxable income related to my employment. Does this income increase my relevant reckonable gross income for tax relief on pension contributions?
  2. I have a secondary freelance occupation which attracts modest (under €5k) non-PAYE income, which I declare on Form 12. I assume this income is pensionable for AVC tax relief purposes. Assuming my employer scheme rules allow it (which they may not), can I claim tax relief on this income for AVCs made to my employer's scheme or must I setup a supplementary PRSA AVC for this purpose?
  3. I also have some Irish deposits which attracted interest (on which DIRT was deducted at source). As it was not related to an occupation, I assume this income is not pensionable.
  4. Finally, assuming my AVC is not made through payroll, what's the simplest way to claim tax-relief? I believe I can get an updated tax credit certificate issued, but I can't see how to add this credit online for the current year. I could of course wait until January 2019 and submit a form 12 for 2018 in order to get a tax refund, but I'd prefer to benefit now.
    • Of course given it's November now, it won't make much difference - but I may be in a similar situation next year and will make the AVC earlier if so.
 
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1. Correct.
2. No. This income does not relate to your employment. But you could establish a separate PRSA to “pension” such income.
3. Correct
4. If you don’t get tax relief at source(under net pay structure), then you probably can only claim relief by submitting a tax return at the year end. I don’t think the Revenue will increase your tax credits to allow you to claim on an ongoing basis, as there is no certainty that you will do the same next year.
 
Thanks for confirming Conan.

For 1. what Revenue documentation supports stock grant income being pensionable for tax relief purpose? I looked and couldn't find this explicitly stated.

For 4. maybe I need to contact Revenue. I'm sure I'd seen some references to other people doing this.
 
For 1. The principle is that if it’s taxable (under Income Tax) then it’s pensionable. But remember the €115,000 income limit for personal contributions.
 
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