Tax relief on AVC

Hi,

Am I correct in thinking that if I make a contribution of say 5000 for 2007 before the 31st of Dec that I will get tax back at 41% as one payment from the Revenue?

Any feedback appreciated

Thanks

Bedlam

Assuming that this contribution does not cause you to breach your age related annual pension tax relief limit then you will get 41% tax back (assuming that you are a high rate taxpayer) in a lump sum and you can also claim PRSI relief.

Claiming PRSI relief on standalone PRSA contribution

Once you make such a contribution write to Revenue with details (e.g. proof of payment, your P60 for 2007 if you make the claim next year etc.) and they should do a P21 balancing statement and issue you with a refund. Once you have claimed tax relief you can then pursue the PRSI relief.

You could possibly have backdated this to last year if you had done it before the end of last month:

October 31 - what does it mean for PAYE worker?

Clubman

Thanks for confirming and yes you are right I missed the 31st of Oct deadline.

Thanks

Bedlam

Well at least you have until October 31st 2008 to maximise your 2007 contribution if you don't want to do it in one go before December.

I processed a claim via a Tax Return form prior to 31st October 2007 based on maxing AVC for tax year 2006. Any idea how long takes to receive refunds on this? Thanks for advise on PRSI..