Is it allowed to claim pension tax relief on BIK notional pay?
For example, when notional pay of €6,000 per annum is added to a person’s salary for the purposes of paying BIK on a company vehicle, income tax, PRSI and USC is calculated and paid accordingly. Therefore, the sum is in effect, treated as gross income.
Does that mean the notional sum can be counted as gross income when calculating allowable pension tax relief?
For example, when notional pay of €6,000 per annum is added to a person’s salary for the purposes of paying BIK on a company vehicle, income tax, PRSI and USC is calculated and paid accordingly. Therefore, the sum is in effect, treated as gross income.
Does that mean the notional sum can be counted as gross income when calculating allowable pension tax relief?