Net Relevant Earnings for Pension Conts

[LJS1979]

Hi all

I’m filling in Form 12 at the moment and have a query in terms of Net Relevant Earnings which is used to determine maximum Pension Contributions.

I had always understood that payments to a revenue approved share scheme could be included in the Net Relevant Earnings calculation but it doesn’t appear that way from the online form.

Can you anyone confirm this?
Thanks
LJS1979

 

[dublin67]

Net relevant earnings essentially means gross earnings. From memory you deduct items like capital allowances, employee expenses and a few other things that don't have much impact to 95% of individuals.

 

[LJS1979]

Net relevant earnings essentially means gross earnings. From memory you deduct items like capital allowances, employee expenses and a few other things that don't have much impact to 95% of individuals.

Thanks for the reply - I guess to put some numbers on this (simplified example).

Salary 50k
Bonus 5k

Bonus plus 5k from salary is paid to Approved Profit Sharing Scheme I.e 10k in total.

Pay for USC/PRSI is 55k but is reduced to 45k for PAYE - the 45k is shown on my P60 as gross earnings

The ROS form is taking the 45k as Net Relevant Earnings whereas I expected it to be 55k - it has an impact on maxim7m contribution for 2018.

Is the online form correct?

Thanks
LJS