Retirement Annuity Relief?

[Inspiron]

In the following scenario, how much can be put into a Pension fund so that Retirement Annuity Relief can be claimed:

- Proprietary director over 50 years old (30% of relevant earnings)
- PAYE income of €60,000
- Self-employer relevant income of €10,000

Is the maximum allowed:
- 30% of total relevant income, i.e.€70,000 = €21,000
or
- 30% of self-employed income = €3,000

The ROS Offline application (Form11) is only including Self-employed income in calculating the allowed Retirement Annuity Relief.

Is this correct?

 

[Kilkenny Tax]

You must be entering the details incorrectly... Relevant earnings includes any income earned from 'non-pensionable' employment also.

i.e 30% of €70,000 (for a person over 50)

 

[Inspiron]

I had entered most of my details in January 2005 and I had forgotten that the Relevant earnings fields have to be entered. They are not calculated from the data already entered about self-employed profits/drawings and PAYE earnings.

In early JanuaryI had filled in the self-employed profits/drawings less capital allowances etc. but had not filled in the PAYE relevant earnings, because I did not have my P60 available.

Thank you for the quick response. When I checked more thoroughly it was obvious what the problem was.

As a matter of interest, should the ROS Offline application be able to calculate the values for these fileds from the other data entered?