Elements of remuneration which count for Calculation of tax relieved pension contributions

T

TheLastBeep

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Hi All,

Query on which elements of my pay count towards the calculation of my limit for tax relieved pension contributions. This might be quite specific to my circumstances or might be of help to others.

I am in the age range where my percentage limit is 25%, however, when I came to calculate an actual figure I realised I wasn't clear on which elements of my pay to include or exclude.

Elements of pay:
  1. Basic Pay (Pensionable) - this is pensionable for the purpose of a workplace DB scheme which is now frozen so further salary increase goes into element 2
  2. Basic Pay (Non-pensionable)
  3. Car Allowance - I am entitled to a company car but do not take it so get a cash allowance instead
  4. Other Allowance - I am entitled to various other benefits but do not take the full value so this is the balance
Initially I had just included 1 and 2 but since I pay income tax and PRSI on all four am I correct in assuming they should all be included?

Thanks for any help.
 
yep - check your end of year tax form and the amount that is subject to USC is the amount you can use for your 25% (up to 115k).

so if you pay 25% via payroll every month, it probably doesn't include 2.3+4 as the company contribution will only be based on yr base salary. You have until the following Oct to adjust for the difference and make a payment.

ask your pension provider if they have a form for prior year top up - my provider has an on line form which includes a calculator and instructions.

50
 
Thanks for the reply @50andOut , I think I'm clear on the totals now, I've looked at my Employment Detail Summary (EDS) for 2020 and my "pay for USC" on there agrees with the total I have, so I think that's correct.

One more thing I wanted to confirm - I will be turning 40 in December this year, am I right that it is your age at the end of the year which determines the % you can put into AVC's? So 25% for me rather than 20% as a 39 year old?
 
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