Public Service Notional Service Years and Tax Relief and Revenue Limits

[GotToWork]

I work in the public service and I have a shortfall of 7 years on my service to get the full 40/80 pension.

I have decided to buy back my shortfall by Notional service. I also have the option of buying the years back with a lump sum.

Does anyone know how the tax relief works?

I will use more that my allowed 25% for over 40's in one year.

Will I get tax relief on any money paid over the 25%.

Thanks

 

[ajapale]

Hi GTW,

I dont know the answer to this one but I am very interested in the answer.

When you say you have an option to pay in a lump sum, what is the other alternative? Can you buy the notional service over a number of years thus spreading your payments and keeping under the revenue limits?

Since this is essentially a tax question Ill leave it here for a day or so. If we dont get a response Ill move it to the Personal Taxation forum.

aj

 

[RainyDay]

When you say you have an option to pay in a lump sum, what is the other alternative? Can you buy the notional service over a number of years thus spreading your payments and keeping under the revenue limits?

It certainly is possible to pay by periodic deductions from salary - see this thread for my comments on that scheme.