A friend is being made redundant and is getting about 40k ex-gratia with roughly 20k tax free. He will get paid notice so will get 2 months pay this year which is also taxable, so lets say 15k there as well so his taxable pay from employment will be circa 15 + 20 = 35k.
He also gets 15k taxable income for renting a garage and he does not intend to work this year so expects 8k from social welfare (9 months JSB). So his total taxable is going to be roughtly 35 + 15 + 9 = 59k. He'd like to max out his top rate pension relief on the 19k using the AVC allowance which he says is 30% given his age with his not so long more current employer. I presume revenue do not allow rental income to be offset or the Dole so is his only option 30% of 35k and will this be allowed at the higher or lower marginal rate ? Sadly I don't think he can get any relief at the top rate but would appreciate thoughts/pointers.
He also gets 15k taxable income for renting a garage and he does not intend to work this year so expects 8k from social welfare (9 months JSB). So his total taxable is going to be roughtly 35 + 15 + 9 = 59k. He'd like to max out his top rate pension relief on the 19k using the AVC allowance which he says is 30% given his age with his not so long more current employer. I presume revenue do not allow rental income to be offset or the Dole so is his only option 30% of 35k and will this be allowed at the higher or lower marginal rate ? Sadly I don't think he can get any relief at the top rate but would appreciate thoughts/pointers.