random2011
Registered User
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although higher bonus % would get around this.
33.5k bonus is squeezed middle? That's more than a minimum wage salary, on top of his salary.We are in the so called “squeezed middle” - it would have been nice to get just a bit more of what he earned.
If you pay the €10K lump sum into the pension and this doesn't bring you over your 2023 age related tax relief limit then you get full tax relief on it - i.e. €10K x 40%. You'll have to do this and submit the claim for relief by October 31st or November 14th if you use Revenue myAccount or are self-assessed.Apologies for resurrecting an old thread.
I am due a bonus of 10k as of the end of this month. As I am on the higher rate of tax, I get 4.8k. If I pay this as a lump sump to my pension backdated for 2023, do I get 1920 as a tax relief?
I don't really understand your point/question. In the general case it is perfectly feasible to claim tax relief on a pension contribution against the previous year's income - e.g.:How is it possible to pay the 10k bonus through payroll backdated for 2023. It is my understanding that It cant be done. To do this, I need to receive the bonus through normal payroll and then pay as an AVC.
Thanks @misemoi, I didn't understand the question/issue but I think that you've addressed it. I omitted to clarify that such a pension top-up needs to be paid from net/after tax income and then the relief claimed manually retrospectively.If backdating an avc, you pay the gross amount out of your bank account direct to your pension provider. Then you resubmit your tax return and get a 40 or 20% refund.
It's probably not commonly done by people, I would guess most AVCs go through payroll. Though I did notice my pension provider proactively contacted clients this year to see if we wanted to do a retrospective AVC so maybe we will see it more often.Thanks @misemoi, I didn't understand the question/issue but I think that you've addressed it. I omitted to clarify that such a pension top-up needs to be paid from net/after tax income and then the relief claimed manually retrospectively.
I would have thought that lump sum contributions from net income to claim tax relief against the previous year's income were common enough? I did several of them over the years myself and know others who did likewise.It's probably not commonly done by people
The are, but they would have nothing to do with the company payroll. Employees would be making the payment their self and doing their own tax return.I would have thought that lump sum contributions from net income to claim tax relief against the previous year's income were common enough? I did several of them over the years myself and know others who did likewise.
Probably more common for personal pensions and EPPsI would have thought that lump sum contributions from net income to claim tax relief against the previous year's income were common enough? I did several of them over the years myself and know others who did likewise.
There was some confusion about this in the past and my experience was that October 31st was the deadline but the extended November (14th?) one seems to be available nowadays as far as I know. Either way, somebody who wants to do this should be getting their skates on at this stage.Am I imagining things as well or is the cut off for payment AND claiming the prior year relief the 31st Oct, not the extended online filer deadline in Nov?
Yes.So someone would want to be organising it now.
Such pension backdating was always limited to the previous year only.Seems like a bit of an anomaly as in theory I can get tax relief on medical expenses backdated 4 years but this has a strict cut off and file deadline?
Note from my pension provider advises:Am I imagining things as well or is the cut off for payment AND claiming the prior year relief the 31st Oct, not the extended online filer deadline in Nov? So someone would want to be organising it now. Seems like a bit of an anomaly as in theory I can get tax relief on medical expenses backdated 4 years but this has a strict cut off and file deadline? Maybe just not updated when they gave the extra 2 weeks for online filing.
This bit is scaremongering.XXX cannot guarantee that this certificate will be available by 14 November for any AVC made after 31 October therefore you are strongly encouraged to submit your AVC and supporting documents before 31 October to avoid the risk of not meeting Revenue requirements."
Yeah, obviously, because schools, hospitals, roads, doctors, nurses, police, and the social welfare system just materialize out of thin air. Nobody would need infrastructure or public safety if we had no taxes to pay, right?It's all theft
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