New pension contributions for 2016?

[Benzino]

Hi,

I have a private pension that I set up earlier this year. Can I make a single contribution before Oct 31st and claim tax relief for it for 2016, even though the pension was only set up this year? From what I have been informed, this is possible.

If it is possible and legal, what would my limits be based off? I turned 30 this year and also got an increase in salary, so would it be 15% of last years salary or 20% of my current salary?

Thanks again, and sorry if this should actually be in the tax forum, wasn't 100% sure where to put it.

 

[letitroll]

Can I make a single contribution before Oct 31st and claim tax relief for it for 2016, even though the pension was only set up this year?

Yes you can make a one off lump payment to your pension before Oct 31st. Your pension company will give you a receipt acknowledging this payment which you can send to revenue requesting a refund at your marginal tax rate

If it is possible and legal, what would my limits be based off?

Limits are based of your age. In 2016 you were under 30 therefore max is 15%, between 30-39 limit is 20%

got an increase in salary, so would it be 15% of last years salary or 20% of my current salary?

It will be 15% of your gross 2016 income as reported on your P60

 

[Benzino]

Perfect, thanks very much for the helpful information.

 

[Benzino]

Actually, I have a follow up question. To claim the tax relief for 2016, I don't need to make the claim before Oct 31st, I just need to make the contribution before that date. I have up to 4 years to make the claim, is that correct?