How to claim tax back on pension contributions?

[deebnm]

Hi,

I have recently changed jobs and new employer does not recognise my PRSA. I have had to amend my payments to direct debit and my tax relief is not granted at source as was previously done in my last job payroll.

How do I claim tax back on my contributions? Is it only an annual process? I am particular annoyed as my PRSA holder nearly guartented that my PRSA would be recognised if I was changing jobs.

At the end of the day I know its a cashflow problem but is there any other disadvantage for my employer not setting it up on my payroll?

Thanks in advance!

 

[ClubMan]

How do I claim tax back on my contributions?

Write to Revenue with details of your lump sum or ongoing pension contributions, a copy of your most recent P60 and an explanation that you are looking to claim tax relief and they should sort it out. Tax relief on lump sums can be claimed as they happen or at the year end. Tax relief on regular contributions will normally be granted via an increase to your tax credits. PRSI relief must be claimed separately:

Claiming PRSI relief on standalone PRSA contribution

Is it only an annual process?

Not necessarily - see above.

I am particular annoyed as my PRSA holder nearly guartented that my PRSA would be recognised if I was changing jobs.

They could not know in advance who future employers might choose as their nominated PRSA providers (if applicable at all - e.g. no occupational pension scheme). They may have meant that you could always transfer your PRSA into another employer's PRSA or occupational (?) scheme even if this meant switching to another pension provider chosen by the employer.

At the end of the day I know its a cashflow problem but is there any other disadvantage for my employer not setting it up on my payroll?

It's admin hassle for them but there is a benefit to them in that if they do this then they save the 10.75% employer PRSI that they would otherwise pay on remuneration that goes towards your pension contributions. And doing it via payroll grants you tax and PRSI relief at source. If at all possible it's the best way to arrange things. You might even be able to convince them to redirect the employer PRSI "saving" into your pension! I did before...