Claiming tax relief on payment from lump sum for spouses and children

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partnership

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Just received my publuc sector lump sum and it was reduced to make a payment to the spouses and children scheme. I understand i can claim tax relief on this but can't see where to do online. I have raised a query with revenue but no reply yet nearly 2 weeks later. There are a couple of different tax credits for things like AVC but nothing for this. Dies anyone know which one to select please?
 
You can't claim tax relief on child maintenance payments. Only on legally enforceable spousal/ex-partner maintenance payments.

Maintenance Payments Relief

This section explains what types of maintenance payments can be made and how they are taxed
www.revenue.ie
You can do this via your Revenue myAccount.

How do you claim relief?

This section explains what types of maintenance payments can be made and how they are taxed
www.revenue.ie
 
It's not maintenance. It is part of the public sector pensions scheme. If you were temporary for a period you have to pay this back and it comes out of the pension lump sum. Superan advised that I can claim tax relief on it. I am just unsure of what to select online to do this.
 
partnership said:
Just received my publuc sector lump sum and it was reduced to make a payment to the spouses and children scheme. I understand i can claim tax relief on this
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That's correct.

Your Pension Department should have provided you with 'Appendix D – Statement of Liabilities (Pension Contributions)' as part of the correspondence for the finalisation of your pension and lump sum.

I see you have already submitted a query using MyEnquiries (presumably with the Appendix D attached). It could take a few weeks for a reply. If you want to progress things quicker, phone Revenue - contact details can be found here.
 
I think that Revenue require a Rettax 1 Letter.

This is a summary of the pension contributions that were deducted from your gratuity and should have been provided to the retiree by their employer.
 
I got a letter from the pension provider and submitted a claim to revenue and the processed it and they repaid the tax claim. In your case its probably known as a retrax 1 letter.
 
partnership said:
I have the letter, I just don't know how to submit it.
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When I asked Revenue online, I was told to submit it with my end of year Income Tax return (in my case that was via my Form 11 through ROS).
After a number of attempts I found this impossible to do, as the ROS system kept rejecting my input data, so eventually they did it for me!
 
@partnership, I retired in 2020, from Department of Education, and like you, Spouse and Children pension was deducted from my lump sum.
DOE provided me with an ITR2 form, which is revenue approved, listing the value of such deduction.
I did not contact revenue, until the start of the new tax year in 2021, at which point I was due to receive my PAYE/USC 2020 Statement of Liability from them.
I submitted the form ITR2 to them via my enquires, and they duly re-issued a second statement of liability, reducing my income, and refund of tax was given.
As you have retired this year, mid-year, it is also important to request from your payroll provider Form ASC12, as you may be entitled to all or partial refund of your ASC contributions only in the year of retirement, as these are calculated pro-rata. I never knew about this, until further examination of anomalies with my pension after receipt of the SCOAP in 2023 and pleased to advise, I got my full refund due from them.
Happy Retirement
 
Thanks Fionclare will ask for the Asc as wasn't aware of that. Got the tax relief on the spouses after o raised a query and uploaded letter.
 
@partnership, that's super you got the relief on the s&c pension deduction, as I noticed someone else on here I think, who did not realise the onus was on them to get tax relief from Revenue, and as it was outside the 4 year rule, her claim to a refund was statue barred. She had quite a large sum deducted from her lump sum, which included s&c and pension arrears, but lost the tax relief/ultimate refund.
Sadly, the form ASC12 was not given to me when I received my retirement pack from DOE, but it appears the onus is once again on the individual to request/complete same.
Good luck, hope all goes well with this application/process too, and you can finally start following that yellow brick road of retirement.
 
Fionclaire thank you so much for the information. Just applied and will get a refund soon. I wonder how long you have to claim it? My sister retired 4 years ago and didn't look for. It is obviously not well known nor do HR or payroll tell you.
 
@Fionclaire I'm curious about the asc12. Is this issued by the pension section(employer)?

I had similar lump sum for Spouse & children pension. I submitted the form to revenue but did not get a refund. The instead increased my tax cut off upwards. Instead of starting to pay 40% on anything above €44k this was increased to an amount above €52.5k. Is this correct? I was of the understanding that the relief was at 40% as this was the rate of tax I was paying.
I’d be grateful if anyone knew thanks.
 
Did you apply for this in the same year as you paid the lump sum? If so, you would get your cut off increased by the amount of the lump sum and credits increased by 20% of the amount of the lump sum. This will give you relief at 20% if your income is below the cut off and 40% if it's above.
 
@partnership, delighted you got this ASC12 sorted. It is shameful indeed that it is not prompted/provided as part of ones retirement pack or to a leaver.
I would advise your sister applies for same, providing she has not taken up employment again within the civil/public sector, as since its introduction in 2019, if you leave/retire before the end of year, a refund may be due, as potential thresholds may not have been met.
I retired in 2020, and upon querying this refund 4+ years later, I was refunded all my ASC contributions less tax, paid only for the year 2020, the year of my retirement.
I have since notified a few unions to reach out to retirees to ensure they are aware of this refund, and understand it will be included in their retirement seminars.
 
@niceoneted, DOE did not issue form ASC12 to me, nor did they advise at date of retirement I may qualify for a refund. Sadly, the onus is on the retiree/leaver to have this form completed and submitted to payroll. I printed it off from a google search and emailed it to payroll. They dealt with it immediately in fairness to them, but like everything else, if you don't ask/enquire, it is not forthcoming.
In relation to the deductions of S&C from lump sum, @Ciru75 is spot on. In my case I did not apply for the relief on these deductions in the year of retirement 2020, as I did not want our joint credits/cut offs distorted for the remaining months of the tax year, so I held off until filing my 2020 tax returns via my account, in the year 2021, and a full refund was given to me at that stage. Hope that helps. Happy retirement, enjoy.
 
That’s @Ciru75 and @Fionclaire. I should have held off but too late now. I’ll search for the ASC12 form and get the ball rolling on that. I’ll deffo have to do a balancing statement at year end. I’ll get a few Bob back at that stage.
 
@niceoneted, no problem, most welcome. Yes, it is really important to complete year end tax returns, there are so many who are losing out on refunds due, that are just sitting there on their my account within Revenue, that will become statue barred after 4 years. Good luck with all.
 
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