Left employment, didn't maximize AVCs, options?

[sonas93]

I usually max my pension contributions at source and do an AVC for things which cannot be deducted from source to maximize it. I usually done this in December and I had been with my last employer for a few years. I left in August and started a new job.

I did not realize that once I left employment I cannot make AVCs to my new pension provider in respect of the old earnings from my last employer in that same tax year. I only saw this mentioned on the AVC details from my new pension provider. It seems you need to make the AVC before you leave.

I see on the tax return it allows you select tax relief for AVCs but you can only add it once and you need to select the employer. Even if I had made the AVC before I left, how would I have added it for tax relief?

I saw some people on here mention that you can get tax relief for those previous employer earnings by making the payment into a PRSA? Can anyone confirm if this is true and if anyone has done it? Thanks.

 

[LDFerguson]

I saw some people on here mention that you can get tax relief for those previous employer earnings by making the payment into a PRSA? Can anyone confirm if this is true and if anyone has done it? Thanks.

If the old job was your only source of earned income, then I'm afraid you can't make an AVC or an AVC PRSA contribution after you've left the employment.

 

[sonas93]

If the old job was your only source of earned income, then I'm afraid you can't make an AVC or an AVC PRSA contribution after you've left the employment.

Thanks for the reply, I think I will just have to let it go in that case. Its a very strange rule that I didn't expect. I'm sure my current pension provider would take an AVC of any amount, tax relief purposes or not as they are not concerned about tax and I would have thought revenue would have considered it all as the one income in the tax year.

 

[ClubMan]

Why couldn't you have opened a regular non-AVC PRSA or personal pension plan and make contributions to that in order to maximise your tax relieved contributions for the year?

 

[Bluefin]

Could someone please confirm if this applies to contractors (umbrella company) - normally I submit a once off AVC when submitting my tax return for the relevant tax year.

For example, contract finished with company A in November 24, can I make a once off AVC payment for this year before I submit my tax return?

I have no other pension contributions for 2024.

 

[LDFerguson]

Could someone please confirm if this applies to contractors (umbrella company) - normally I submit a once off AVC when submitting my tax return for the relevant tax year.

For example, contract finished with company A in November 24, can I make a once off AVC payment for this year before I submit my tax return?

I have no other pension contributions for 2024.

• An AVC is an Additional Voluntary Contribution to an Occupational Pension Scheme. You would have to be a member of an Occupational Pension Scheme before you can think about AVCs. Your query suggests that you're not.
• Regardless of contracts, is your employment with the umbrella continuing or did that cease in November 2024?

 

[Bluefin]

Umbrella company ceased trading in mid December.

Apologies I did a one off payment to a PRSA in 2023.

No AVC payment to any pension in 2023.

Can I make a one off payment to a PRSA payment in 2024?.

 

[sonas93]

Why couldn't you have opened a regular non-AVC PRSA or personal pension plan and make contributions to that in order to maximise your tax relieved contributions for the year?

This is what I am wondering. Do I have any PRSA options that is non AVC I guess? As previous poster mentioned AVC is tied to an occupational pension plan, which I did have for that employment.

 

[GSheehy]

Example.

Earned €25,000 Jan to August. Left employer and didn't make an AVC. Can't do so now.

Earned €25,000 August to December with new employer. Yes on an AVC/PRSA for this income.

Submit it manually (by post) to Revenue if system doesn't allow you to do it.