W
Wheninrome
Guest
Hi
I have been reading a few threads after hearing about some potential tax savings I can make but am still not sure what I need to do so would really appreciate some help. My circumstances are:
1. Having being paying tax at higher rate for the last number of years
2. Leaving work in a just over a month to travel for a year (to get away from the recession!)
3. Have not made any pension contributions to employers AVC scheme
4. I want to maximise the amount of cash i take travelling
My question: Can I make contributions now to the employer scheme (say €20,000), backdate them and claim relief on the contributions for 2008 & 2009 @ c. 41%? Roughly speaking, receive back from revenue c. €8,200. Leave employment and withdraw contribution less 20% which is €16,000. Roughly end up €4,200 better off.
The above is very crude as I believe PRSI comes into it and the above numbers maybe should be grossed up.
Some additional queries are
1. Are the revenue likely to know what i am doing and not give me the refund?
2. Can i tell work to tell the trustees to make sure my cash is invested in cash and not equities to ensure when i go to withdraw the contributions that they have not devalued
Appreciate any kind of help on this.
I have been reading a few threads after hearing about some potential tax savings I can make but am still not sure what I need to do so would really appreciate some help. My circumstances are:
1. Having being paying tax at higher rate for the last number of years
2. Leaving work in a just over a month to travel for a year (to get away from the recession!)
3. Have not made any pension contributions to employers AVC scheme
4. I want to maximise the amount of cash i take travelling
My question: Can I make contributions now to the employer scheme (say €20,000), backdate them and claim relief on the contributions for 2008 & 2009 @ c. 41%? Roughly speaking, receive back from revenue c. €8,200. Leave employment and withdraw contribution less 20% which is €16,000. Roughly end up €4,200 better off.
The above is very crude as I believe PRSI comes into it and the above numbers maybe should be grossed up.
Some additional queries are
1. Are the revenue likely to know what i am doing and not give me the refund?
2. Can i tell work to tell the trustees to make sure my cash is invested in cash and not equities to ensure when i go to withdraw the contributions that they have not devalued
Appreciate any kind of help on this.