Calculating take home pay after 20% AVC paid

[qingdao]

Hi,

I'm sure this is a simple question for someone..

I make 40000 and pay max AVCs i can pay into private sector pension - 20%. (8000).

When calculating the tax i'm due to pay do I just use 32000 in my tax calculations - put that in as my income in a standard tax calculator like in the kep post.

As I'm married and my wife also pays some pension contributions....in the tax calculators do i put in the total after these contributions are made to find the nett take home pay.

thanks

 

[ClubMan]

When calculating the tax i'm due to pay do I just use 32000 in my tax calculations

Yes.

As I'm married and my wife also pays some pension contributions....in the tax calculators do i put in the total after these contributions are made to find the nett take home pay.

Same with her income - deduct her pension contributions from her gross to give assessable gross.

I'm assuming that you are both getting full tax and PRSI/health contribution relief via payroll.

www.taxcalc.eu

 

[qingdao]

Hi
Thanks for the reply.

Are the pension contributions calcultated as a percentage of your gross salary (before any deductions), or a percentage of your gross salary less PRSI contribution. I've just been looking at my payslip and crunching the numbers and they dont seem to add up as neatly as i thought they might.

i.e if as above i'm paying 8000 /yr into my pension should it be a neat 666.66 per month broken into, in my case 4% DC (133.33) and 16% AVC (533.33).

 

[ClubMan]

Are the pension contributions calcultated as a percentage Total of your gross salary, or a percentage of your gross salary less PRSI contribution.

If you mean the age related tax relief limits for pension contribution tax and PRSI/health contribution relief then these are calculated on your gross (i.e. your first point). Note that pension contributions up to these limits qualify for full tax and PRSI/health contribution relief.

I've just been looking at my payslip and crunching the numbers and they dont seem to add up as neatly as i thought they might.

Maybe post the payslip figures for people to comment?

 

[qingdao]

I think i spotted the problem. I got a small payrise mid year. My AVC didnt increase in line with this pay rise. That seems to be the only difference.

Thanks.

 

[ClubMan]

OK - good to check these things. You should also check you P60 and statement of tax credits etc. just in case.