Making AVC before Oct 31st - can I include TY 2005?

Y

YouNeek

Registered User
Messages
85
Hi,

I'm currently not maximising my AVC contributions for my age bracket.

I'd like to top them up to the full allowable % of my salary, so I'm planning on making a lump sum contribution, prior to Oct 31st. (I'm a PAYE employee.)

In terms of claiming tax relief on this lump sum:

- Can I retrospectively pay a lump sum for 2005, and claim tax relief on the amount?
- Or can I only pay in a lump sum from Jan 2006 to date?

Thanks for any advice.
 
Thanks for that ClubMan.

Given that I'm in an occupational scheme, can I just make the contributions through payroll as normal, prior to Oct 31st '06, in respect of 2005?

It can be a slow process (matter of weeks) to make changes pension contributions - if the contribution is not made by Oct 31st, can I claim the relief anyway?
 
YouNeek said:
Given that I'm in an occupational scheme, can I just make the contributions through payroll as normal, prior to Oct 31st '06, in respect of 2005?
Click to expand...
You'd need to ask your employer.
It can be a slow process (matter of weeks) to make changes pension contributions - if the contribution is not made by Oct 31st, can I claim the relief anyway?
Click to expand...
No - the contribution must be lodged before the deadline to qualify for "backdated" relief against 2005 income otherwise it will be set against 2006 income.
 
Hi

While the contribution must be made prior to the 31st Oct'06, can it be allocated after that date, so if you have many AVC options you can get the dosh into the Trustees before 31st Oct'06 but you can take a few days after this date to decide on how it's invested etc ?

Thanks

G>
 
My understanding is that you have to get a cert from the underwriters of the scheme (insurance company) as proof that you have lodged your money with them. You then get the cert to revenue prior to 31/10. Some revenue areas allow the cert date as proof of payment some don't so you need to get the cert in as quickly as possible.
 
Why not just put it in Cash (or equivalent) Fund NOW and then you can take your time to think about switching it after?
 
Of course - if it is a pension contribution then it's a pension contribution - Revenue do not care what fund it goes in and if you subsequently transfer it to a different fund.
 
ClubMan said:
Yes:

Don't forget to also claim PRSI relief: .......................................
You can do that as well or you can do it any time before October 31st 2007.
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Clubman - can you claim the PRSI relief regardless of salary? eg. if you earn in excess of the PRSI limit (circa 44k I think) can you get the extra 6% back on your AVCs?

Thanks
Roy
 
No just 2% on earnings over the PRSI cut-off...this has been very well discussed!
 
CapitalCCC said:
No just 2% on earnings over the PRSI cut-off...this has been very well discussed!
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ouch - sorry for asking.... it's actually not so easy to cover every thread in every forum in great detail. Thanks for clarifying anyway.

Roy
 
No need to say sorry...I was not having a go...I made the remark because it was such a contentious issue!!
 
You can make AVC's anytime you want. However it will not be deductible against your 2005 tax bill after Oct 31st. (Not sure of the position re the Pay and File deadline of Nov 16th).
 
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