Tax relief on PRSA private pension

[LM26]

Hi,

Apologies if this has been covered elsewhere, I had a quick search beforehand.

At the moment I pay €84 per month into an Irish Life PRSA pension. This €84 is a gross deduction from my monthly wages.

I have written to Revenue who say that I am not entitled to a further tax relief as it is taken account of in the way payroll administer my pension contributions (by what Revenue call a 'net pay' arrangement), however I am wondering why this relief is not shown on my tax credit certificates? I read on the citizen information website that because I am under 30 I am entitled to 15% tax relief - is this taken account of by payroll?

Overall I am wondering should my tax credit cert not show a summary of pension relief received? I just want to know I am getting everything I am entitled to by way of pension tax relief.

Thanks for any help.

 

[deadlyduck]

The Revenue commissioners are correct in their information they relayed to you- by having the pension premium deducted by your payroll department, your PAYE & levies are automatically calculated on the balance of pay (that's the 'net pay arrangement' system at work).

The credits you see on your tax credit certificate are those which are not granted under the 'net pay arrangement' e.g. personal credit, employee credit and any others you might be entitled to claim.

Re the 15% limit, this refers to the maximum percentage of your gross pay that you can currently pay into your pension fund. If you pay a greater percentage, you won't get the tax relief on the excess in the current year. Of course, you can choose to pay a lower percentage.
You should check with your payroll department/ your payslip to see if the 15% threshold is not being exceeded and if necessary advise your payrol department of any required changes.

 

[LM26]

The Revenue commissioners are correct in their information they relayed to you- by having the pension premium deducted by your payroll department, your PAYE & levies are automatically calculated on the balance of pay (that's the 'net pay arrangement' system at work).

The credits you see on your tax credit certificate are those which are not granted under the 'net pay arrangement' e.g. personal credit, employee credit and any others you might be entitled to claim.

Re the 15% limit, this refers to the maximum percentage of your gross pay that you can currently pay into your pension fund. If you pay a greater percentage, you won't get the tax relief on the excess in the current year. Of course, you can choose to pay a lower percentage.
You should check with your payroll department/ your payslip to see if the 15% threshold is not being exceeded and if necessary advise your payrol department of any required changes.

Thank you so much deadlyduck, I really appreciate your reply!