Conor Murray • 04 Nov 2019
Claiming tax-relief on your pension payment in 4 steps!
Step 1 – Check you are eligible
It’s important to check you are eligible for tax relief on the amount you wish to contribute to a pension plan. You can confirm this with your local tax office if you are uncertain or also by talking to your financial advisor who will guide you. To find your local tax revenue office use the check locator at www.revenue.ie/en/contact /index.html#. To use the contact locator you will need details of your PPS number and possibly other Irish tax reference ID numbers.
Step 2 – Make your payment
Meet with your financial advisor and complete the necessary paperwork required to accompany your pension payment. There are different application forms required from a personal pension plan to a PRSA or AVC form and your financial advisor will ensure you have competed the correct paperwork. You can pay your pension lump sum by cheque or electronic fund transfer (EFT). When making a payment by EFT always ensure you have a policy or reference number from the life office applicable as this will ensure your payment is applied to your plan in an efficient and speedy manner. If filing your 2018 tax return on-line the final deadline to make a pension payment is Tuesday 12th November 2019. Please allow time when making an EFT payment so it reaches your pension plan before the deadline.
Step 3 – Tax relief certificate
One your paperwork has been processed and your payment received the life office will send you policy documentation and a tax relief certificate. This should be with you in approximately 10 days and it’s important to keep the certificate with your records.
Step 4 – Making your tax relief claim
Whether you are a PAYE employee not filing your return on-line or a self-employed and a proprietary director who is filing their return on-line you don’t need to send the tax relief certificate to the revenue. The granting of tax relief is at the discretion of your local inspector of taxes and you only need to send your tax relief certificate should your local tax office request a copy. When settling your tax return against this year’s income it’s important to note you may not get a refund by cheque but instead receive amended tax credits.
Conor Murray - 1st November 2019