Use the full 20%Why only up to what she is getting the higher rate as opposed to maxing our the 20%?
Use the full 20%
You can swap a part of her band to you to maximize the total you're paying at lower rate.
40k less 20% pension leaves 3,300 unused at lower rate, so just apply to Revenue to switch that much to you.
If you don't, you just apply for a balancing statement at end if year and you'll get it back then.
@Eireog007
You each have a standard band of 35,300
If your wife earns 40k, and puts 20% into pension, she's only got taxable income of 32,000
Whereas you, with 50k, less 20% will have 40k. So you'll pay higher rate on 4,700
Instead, as revenue to adjust your bands (you can do it online). Her 32k, you 38,600
Revenue will issue new tax certs, and it'll be auto reflected in your payroll.
That's assuming you're making the 20% payment to pension monthly through payroll.
Ah, if you didn't pay income tax in Ireland last year, you can't get relief for last year. But it's a handy feature. I've just made a extra contribution for last year, as cash flow didn't allow me make max monthly.
So even if it takes you a while to get set up this year, you can still make the max contribution for the year anytime until Oct next year.
Ah, then you can.
You make the gross payment to your pension fund, and they'll issue a receipt. You can then immediately submit details to revenue, and get the tax refunded.
My pension administrator offers to calculate the maximum from P60 details.
It's a quick way to get the pension started.
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