Do any state or semi-state bodies facilitate PRSA income tax relief at source?

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noelÓm

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I am employed in the public sector and am a member of a funded occupational pension scheme (completely separate from the Single PS Scheme).

I would like to make PRSA contributions and receive income tax relief at source, rather than claiming a refund at the end of the tax year. With inflation at 9% and a mortgage to service, I would like to get the tax relief into my hands as soon as possible. I am not interested in the AVC scheme offered by my employer as it is too expensive and fund costs are quite opaque.

My understanding is that it is policy within the civil service not to facilitate income tax relief at source for PRSA contributions, in spite of this being available for tied AVC schemes.

I want to do my homework before approaching my HR section. So, are you aware of any precedent in the wider public sector of a state agency or semi-state body facilitating PRSA income tax relief at source?
 
You can get the tax relief coded into your tax credits, so you don't need to wait until after the end of the year to claim tax rebate.
 
Protocol said:
You can get the tax relief coded into your tax credits, so you don't need to wait until after the end of the year to claim tax rebate.
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Are you aware of public sector employers doing this when the PRSA is chosen by an employee?

Markel said:
I do this, not difficult
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Do you work in the public sector? Are your contributions to an AVC scheme offered by your employer or a separate PRSA you set up yourself?
 
Yes, I have done this, as a PS, while contributing to a pension not through payroll.

I know of a relation, another PS, who had a PRSA-AVC, with tax relief coded into tax credits, not at source.

This is no big deal, it's common.
 
noelÓm said:
Are you aware of public sector employers doing this when the PRSA is chosen by an employee?



Do you work in the public sector? Are your contributions to an AVC scheme offered by your employer or a separate PRSA you set up yourself?
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Yes - me! My employer doesn't have to know anything about the AVCs, I deal with revenue to get my credits/tax bands adjusted. My employer's avc is very poor value so I'm a member of the Single Scheme and I have arranged my own AVC PRSA with Zurich (via a broker). My AVCs come out via a direct debit rather than directly via payroll. The only time you have to worry about a time lag in claiming tax relief is if you make a one-off lump sum, special contribution or similar.
 
noelÓm said:
My understanding is that it is policy within the civil service not to facilitate income tax relief at source for PRSA contributions, in spite of this being available for tied AVC schemes.
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Employers do not want to have to deal with multiple different PRSA providers in relation to salary deductions. It is a matter of convenience. They will have absolutely no interest in whether or not you arrange your own PRSA-AVC and you have no need to inform them. You only have to deal with your selected PRSA provider to set up the AVC by direct debit and then with Revenue to arrange to have it coded into your tax credits.
 
Markel said:
Yes - me! My employer doesn't have to know anything about the AVCs, I deal with revenue to get my credits/tax bands adjusted. My employer's avc is very poor value so I'm a member of the Single Scheme and I have arranged my own AVC PRSA with Zurich (via a broker). My AVCs come out via a direct debit rather than directly via payroll. The only time you have to worry about a time lag in claiming tax relief is if you make a one-off lump sum, special contribution or similar.
Click to expand...

Early Riser said:
Employers do not want to have to deal with multiple different PRSA providers in relation to salary deductions. It is a matter of convenience. They will have absolutely no interest in whether or not you arrange your own PRSA-AVC and you have no need to inform them. You only have to deal with your selected PRSA provider to set up the AVC by direct debit and then with Revenue to arrange to have it coded into your tax credits.
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Thanks both. This is really helpful, as there's very little detail about this online or else its very private sector-orientated.

How exactly do you interact with Revenue? Is it easy to vary the amount your monthly contribution?

Does the PRSA provider or Revenue have to communicate somehow with my occupational scheme operator?
 
AVCs are linked to the main scheme. At retirement age the AVCs and main scheme are matured at the same time. To mature the AVCs you have to complete a maturity claim form and a main scheme additional information sheet. This form must be completed (signed) by the Trustees of the Main Scheme so that the AVC product provider can calculate the additional retirement benefits available.


Gerard

www.prsa.ie
 
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