Key Post: October 31 - What does it mean for PAYE worker

[Brendan Burgess]

Question guys. I am PAYE worker on marginal rate. I don't max my AVC contributions cas still only in mid twenties and choose to max the SSIA instead.
Question. What does October 31st mean for someone like me.....can I still contribute AVC for last years tax year. i.e the one ended Dec 31, 2002. Or as PAYE is it just in the current year I can make actual contributions as my tax would be assesed as I go.
Second, I presume I can make my AVCs in any case for this year up until Dec 31, 2003???

 

[drop dead gorgeous]

31/10

You may backdate a lump sum AVC against your 2002 income provided you make it before 31st Oct. You have until 31st Oct 2004 to backdate a lump sum AVC against 2003 income. Regular AVC contributions cannot be offset against previous years tax.

 

[corkrebel]

Re: October 31 - What does it mean for PAYE worker

One question - what do you have to do to claim the tax relief for 2002 if you make an AVC lump sum by Oct31st? Does the Revenue send you a cheque with the refund or give you credits for next year?

 

[Homer]

Re: October 31 - What does it mean for PAYE worker

If you make an AVC (strictly speaking, a special employee contribution) on or before 31 October and choose to designate it as backdated to 2002, you will be eligible to claim a refund of tax paid for 2002.

In order to do this, you will have to submit a Form 12 for 2002. You will receive a cheque from the Revenue (God knows when) in respect of the tax relief on your special contribution plus or minus any other adjustment applying in respect of the 2002 tax year (eg. BIK, share dividends, CGT, medical expenses).

Regards
Homer

 

[ClubMan]

Re: October 31 - What does it mean for PAYE worker

In order to do this, you will have to submit a Form 12 for 2002.

In a letter with the relevant information will suffice and a Form 12 return is not always necessary.