SSIA pension incentives question on dates

Oh whoops, despite reading this forum I think I've boobed on dates.

I started my SSIA on 5 Dec 01. According to my notification from An Post, they will actually pay out on 31 Dec 06 (And by the way... what are they doing with the money from 6 Dec to 31 Dec I wonder? Snaffling my interest no doubt...)

So what are the dates for the qualifying earnings of less than £50,000 for the 2,500 tax credit incentive? It said it's the year BEFORE the SSIA matures so that would be 2005, yes?

But I am both employed and self employed, and my self employed accounts run to 30 April. So I've just completed my tax return and made my pension payments for 2005 PAYE and year to 30 april 2005 self employed, and did not even think about this possibility because I was thinking, won't get the money until 07.

Can I do it next year or have I missed the boat? I am aware there are pros and cons relating to whether to go for AVCs/42% or this incentive20% but my income varies quite a bit from year to year so I do not yet know whether I will want to do it, I just want to know if it's possible.

All the best

Imogen

Imogen,

I work as a pension advisor in a brokerage. In simple terms, to avail of this Government incentive, you must adhere to the following;

1) Must elect to avail no later than 3 months after your SSIA matures -so in your case you will have until 31st March 07 at lastest to do this.
2) Your gross earnings must not have been greater than € 50K in the year prior to your SSIA maturing ( ie for 2005)
2) If you are not in a position to determine this, then you must look at the previous tax year 2004, and your gross income must not have been greater than € 47,500

So to some up, you can still avail of this option provided your income requirements are inline as above. I hope this is of some help. If you need additional advice, I would be more than happy to provide same.

Thanks

Ken.

Thanks Ken.

Now I have that one sorted out I am still all confused about how they are going to calculate it/what one is best to do. I see from another thread there is someone else on the forum in a similar position to me in that just by coincidence not through planning, I will qualify on the 50,000 limit for 2005 but in 2006 I'm going to have some 42% income.

I can't figure out how the Revenue are going to do the calculations/ whether it will be worth doing the SSIA pension tax credit. If you do it, presumably it takes precedence over other pension payment tax credits? Will it go SSIA credit then 42% then normal 20% or do you start off gobbling up any 42%? My head's hurting just thinking about it but I know I need to because my income will likely go down again from 07 on so I need to try to maximise what I can into pensions.

I've asked the revenue to see what they say since it doesn't explain this in the help files on their website. No reply but of course this is a very busy time of year for accountants and taxpersons.

I am 45 and did that depressing calculator thing on the Pensions Board website recently where it basically tells you you're going to have to go on slaving into the grave just to be able to eat (ok I'm exaggerating... but it was very depressing when I've spent 15 years paying into pensions already... this protestant work ethic deferred benefit idea will never catch on...)

All the best

Imogen