Key Post: Claiming prsi relief on standalone prsa contrib

ClubMan

Registered User
Messages
45,302
Re: PRSI relief on Personal Pensions

Savy said:
Just off the phone to the collectors general in Limerick.
Two things

1)Claims can only be made on contributions from Jan 03 onwards

Note that this includes contributions made in 2003 (before October 31st) but set against income earned in 2002. I just found this out recently.

On a related note am I missing something with the following:


  • Pension contributions (within the usual age related pension tax relief limits) made via payroll are deducted from gross salary before any tax, PRSI (4%) or health levy (2%) deductions are made so that they qualify for full tax, PRSI and health levy relief.
  • Pension contributions made on a standalone basis qualify for tax and PRSI (4%) relief buy the health levy deductions (2%) are not refunded? At least that seems to be the case with PRSI relief that I have claimed on standalone personal and PRSA pension contributions recently. Two monthly contributions of €700 (€1,400 in total) resulted in a €28 refund in respect of PRSI.
Basically do pension contributions made through payroll benefit from health levy relief while pension contributions made on a standalone basis do not?
 

ClubMan

Registered User
Messages
45,302
Re: >>Claiming prsi relief on standalone prsa contrib

This topic also discusses the issue of whether or not standalone contributions benefit from PRSI and health levy relief or if health levy relief is only granted on pension contributions made through payroll.
 

ClubMan

Registered User
Messages
45,302
Re: >>Claiming prsi relief on standalone prsa contrib

As far as I know both PRSI (4%) and health levy (2%) deductions are refundable on such pension contributions and you claim this back under the "PRSI" claim.
 

ClubMan

Registered User
Messages
45,302
Somebody passed this info onto me. I can't find the CGPRSI1 form on the Revenue website just yet.
PRSI Refunds for Pension Contributions

The Revenue Commissioners have recently published Form CGPRSI1 which allows taxpayers to reclaim PRSI on contributions made to a PRSA, RAC or AVC where PRSI relief was not given through payroll.

Refunds can be claimed for payments made since 1 January 2003.

The refunds apply where Income Tax relief was granted on the contributions against employment income or directors salary/fees.

The refund form can be accessed on the Revenue website-www.revenue.ie.
Update - the CGPRSI1 form is here now.
 

geecee

Registered User
Messages
51
Hi Clubman/Others
Does a claim need to be in before the Oct 31st deadline like PAYE relief - or can it be claimed any time

Anyone know if its still true that i have to claim the PAYE relief before the PRSI relief... Or can I calim them both in Paralell?
Thanks in advance!
 

geecee

Registered User
Messages
51
Oops - should have read the form!
Looks like i need to claim the PAYE relief first...

This application form should be used to request a PRSI refund where you have made a contribution to:
- a PRSA (Personal Retirement Savings Account)
- a RAC (Retirement Annuity Contract)
- an AVC (Additional Voluntary Contribution by an employee to an occupational pension
scheme)
and
where PRSI relief has not already been granted by your employer through the payroll.
• Refunds can only be claimed in respect of payments made on or after 1st January 2003.
• Refunds will only be made where you have been granted income tax relief on the contribution against
‘reckonable earnings’ [earnings from an insurable employment or insurable (occupational injuries)
employment] or ‘reckonable emoluments’ [directors salary and fees].
A refund cannot be claimed in respect of pension contributions that are tax deductible against other income
which is not ‘reckonable earnings’ or ‘reckonable emoluments’ ie income from a trade or profession.
 

ClubMan

Registered User
Messages
45,302
Does a claim need to be in before the Oct 31st deadline like PAYE relief - or can it be claimed any time
The contribution must be made before October 31st if you want to set it against the previous year's income tax. You can process the claims for tax and PRSI relief after that date though.
Anyone know if its still true that i have to claim the PAYE relief before the PRSI relief... Or can I calim them both in Paralell?
Thanks in advance!
PAYE relief must be claimed first as you now know.
 

suzie

Registered User
Messages
494
Sorry for re-opening this thread!!!

I've had a pension outside of payroll and have been doing the PRSI refund in batches (ie 2003, 2004, 2005) claimed todate. About to do the next batch of years.

I'm confused as to what one should actually get refunded? As stated I've done a balancing statement for 2003-2005, but I've just calculated that for my pension contributions over these years, the actual refund given by revenue was just 2%. Is this right? From the above it implies I should have got more? I'd just like to know as I will raise it when I submit my refund for the subsequent years.

Thanks
S.
 

Protocol

Registered User
Messages
3,711
Tax relief is at 20% or 41%.

Then, PRSI (4%) & health levy (2%) relief is more complex, but it can be the full 6%.
 

suzie

Registered User
Messages
494
I guess thats what I'd like to know... how do they calculate the refund. FYI, the Tax relief would have been at the higher band if thats any help?

S.
 

suzie

Registered User
Messages
494
Adding to the mix....

After doing my return for 2009 last year, this year I sent off for the AVC refund...it came back as 8% of the AVC, which is a different % from previous refunds (as per above)....


I'm really confused...its like they really dont want us to know!!! I've asked revenue before, but couldnt get a straight answer :-(

S.
 

Baracuda

Registered User
Messages
250
PRSI was increased from 6% to 8% in 2010 and hence the higher refund however Fina Fail abolished PRSI relief for PRSA/PPP/Occ/AVC's for 2011
 

suzie

Registered User
Messages
494
aware of no relief from 2011, but what's really confusing is how they calculate the refund? As I stated previously, in previous claims I only seemed to get 2% back and I even rang them to enquiry but the response wasnt clear to me nor did it appear the person I was talking to had a clue!!

S.
 

suzie

Registered User
Messages
494
Just listened to newstalk on the way into work where it implied the below was true?

Can anyone confirm if I make a AVC contribution in 2011 but back date it to the 2010 tax year then its still qualifies for the PRSI refund?

Thanks
S.
 

ClubMan

Registered User
Messages
45,302
If (as I believe to be the case) PRSI relief on pension contributions was available in 2010 then if you make a personal/PRSI contribution before October 31st 2011 then you should be able claim 2010 tax and PRSI relief on it (assuming that you have not already exhausted your relief for 2010). Unless Budget 2011 also eliminated the "backdating" option?
 

oysterman

Registered User
Messages
581
What does the 4-year limit on claiming relief actually mean?

If I put a claim in before the end of the 2011 calendar year, can I claim for 2010, 2009, 2008 and 2007?

Or can I also claim for 2006, given that by the end of 2010 it's unlikely I'll have my 2010 income tax return resolved with revenue and it appears that you can only claim PRSI relief on pension contributions which have been allowed by Revenue?
 
R

RGOMTs

Guest
Originally Posted by Clubman

The contribution must be made before October 31st if you want to set it against the previous year's income tax. You can process the claims for tax and PRSI relief after that date though.
I know this was posted a while ago (in 2007) but I am getting a different story now from the Revenue.

I made an AVC to my pension fund last month (prior to the 31-Oct-2011 deadline) with a view to back-dating it to maximise my tax relief in 2010. I sent a letter to Revenue 07-Nov-2011 but they are refusing to allow me claim tax relief in 2010 because I did not notify them prior to 31-Oct-2011.

Has anyone else come across this issue? Do I have any come back?
 
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