AVC and claiming Tax Relief

Discussion in 'Pensions' started by igloo, Dec 1, 2006.

  1. igloo

    igloo Frequent Poster

    Posts:
    77
    Folks,

    This question may well have been expounded here before, but the Search option ain't working for me ;)

    Based on my age and tax band, I'm ready to maximise my 2006 contribution to AVC via my employer to the tune of approx €11,000

    I understand that after the lump sum is processed by the pension fund, a receipt of sorts is provided as proof of payment. But how do I claim the 42% tax relief;
    • Do I file a tax return for 2006?
    • Do I get a lump sum cheque back from the Revenue?
    • Do I get automatic increase in tax credits for year ahead?
    All advice appreciated.
     
  2. Guest126

    Guest126 Guest

    If you put it through payroll you will get relief at source.

    If you are submitting a cheque to the pension plan 'outside' of payroll, then you will need to submit a tax return with proof of contribution.
     
  3. igloo

    igloo Frequent Poster

    Posts:
    77
    Thanks for the response. I will be paying via cheque, my employer will handle the processing of the contribution to the pension fund manager.
     
  4. Guest126

    Guest126 Guest

    Why not put (at least) some of it through payroll, the relief is immediate then no waiting around for cheque from revenue.
     
  5. ClubMan

    ClubMan Frequent Poster

    Posts:
    43,689