Tax relief on AVCs

N

Ndiddy

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Age-related tax relief is on gross income or just income through the pay? Previously with Irish Life, I would check my previous year's Revenue statement and take 25% the gross pay ( USC pay on P21) as my max for tax relief. I would just make up the small difference between what was taken through payroll and what was on the P21 as a lump sum AVC contribution.

My company moved to Zurich and the broker dealing with our DC plan is saying I can only get tax relief though payroll....can anyone point me to something I can send him to say he is wrong?
 
You're right. He's wrong. Ask him if he knows what a PRSA AVC is and what it's for. Zurich offer one, as do all of the High Street pension companies in Ireland. (It's an product that you can start yourself to make AVC contributions without them going through payroll.) Or you can search for AVC PRSAs on the www and you'll get plenty of articles explaining how you can pay an AVC and get tax relief without going through payroll.
 
Interesting - I had no idea.

So if I have income from dividends for example I can add that to my salary income & calculate my AVC based on that number?
 
Horatio said:
Interesting - I had no idea.

So if I have income from dividends for example I can add that to my salary income & calculate my AVC based on that number?
Click to expand...

No. My interpretation of @Ndiddy 's original post is that s/he is talking about non-pensionable salary from the same employment, e.g. bonuses, commissions, overtime etc.

Dividend income is not considered to be earned income for pension purposes; it's investment income. Only earned income can be tax relieved through pension contributions.
 
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