AVC Lump sum

L

lop130371

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Hello,

I only have a quick question: I wonder if it's too late at this stage to top up my pension with a AVC lump sum and request tax relief. I was able to save more than expected this year and would like to top up my AVCs to the max allowable, we have Mercer as the pension provider. Our pension is a Defined Contribution pension scheme where the company puts 8% and I put 6% of the salary.

Thank you
Lorcán
 
No it's not to late. Contact Mercer immediately. You should be able to pay by electronic transfer from your bank account. The deadline to pay and submit is 31st October.

But if you pay and submit online this is extended to 18th November.

Submission by Myaccount is online and allows you to make use of the extended deadline.

But it is preferable to aim to submit before 31st October. You might have to negotiate with Revenue to make use of the extended deadline.
 
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I presume that you're talking about your 2025 allowable limit? You can assign it / carry it forward to your 2026 allowance if it doesn't get processed in time.
 
Redzer said:
I presume that you're talking about your 2025 allowable limit? You can assign it / carry it forward to your 2026 allowance if it doesn't get processed in time.
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Are you sure about that? Doesn't sound right to me.

Contributions over one's annual age related tax relief limit can be carried forward and relief claimed in subsequent years against income from the same employment. But I'm pretty sure that the actual unused relief can't be carried forward as you suggest. It's effectively "use it or lose it".
 
Sorry, sloppy wording from me. Intended to say the contribution could be potentially used against the 2026 allowance if it was submitted but missed the 2025 cut off. The unused relief can't be carried forward.
 
Line up with your pension provider asap how to pay, ie get IBAN and a reference to put on it.
Ensure you understand your bank transfer limits as there may be a daily transfer limit so you may need to make it in a couple of tranches
Check if you need to release funds from a savings account to an account you can pay it out of.
Ensure you have online access to submit your tax return to Revenue.
 
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