Occupational work pension - backdate contributions to max out tax relief

clueless2019

Registered User
Messages
14
I spent a while trying to internet search my question to no avail. so any assistance would be hugely appreciated.

Anyone know if i can backdate pension contributions to previous years in a work pension to max out previous tax relief. ive asked work but they have yet to comeback to me.

So if i was entitled to 25% tax relief on pension contributors for the last 5 years. Can i make a one off contribution to my work pension now and ask the RC to backdate it to max out previous years and thus benefit from 40% at source tax relief and keep this years tax relief (also 25%) for my contributions later in the year.

in other words, work out 25% of my salary for last 5 years and make a contribution to that amount and in effect revise my P60s to reduce my tax bill.
 

clueless2019

Registered User
Messages
14
Thanks RedOnion. i note you give alot of good advise on this site. you should probably start charging me.
 

Lisboa

Registered User
Messages
37
This may be something that I'm interested in utilising too.

In 2018, my taxable pay was around 39,000. (My normal/current salary is 23,000 but I was working 2 jobs for a while last year, one full time at 37 hours, one part-time at 20 hours).

So I would have paid 20% tax on 34,500 (6,910) and 40% on the balance of 4,500 (1,800).
(Minus around 3,500 for tax credits).

So can I make a contribution to my pension of anything between 1 euro and say 4,500 euro (will be a bit less because of the tax credits), and revenue will give me 40% tax relief?

Does the 40% relief (up to 1,800) get added to my pension, or deducted from my 2019 tax payments?

Do I need to make the contribution through revenue, or through my works payroll, or direct to my pension provider via AVC?

And I have until December 31 to utilize this?

Like the original poster, I couldn't find info to this on revenue.ie.
Am I blind, is there a link?

Thanks folks, have a lovely day.
 

RedOnion

Frequent Poster
Messages
3,045
So can I make a contribution to my pension of anything between 1 euro and say 4,500 euro (will be a bit less because of the tax credits), and revenue will give me 40% tax relief?
Yes.

Does the 40% relief (up to 1,800) get added to my pension, or deducted from my 2019 tax payments?
You submit a form 12 online for 2018, and refund will be issued as with any balancing statement.

Do I need to make the contribution through revenue, or through my works payroll, or direct to my pension provider via AVC?
Direct to pension provider - contact them and see if they have a process. Your HR function should be able to help.

And I have until December 31 to utilize this?
Only until October 31st. Well November 15th if you do form 12 online.
 

aristotle

Frequent Poster
Messages
777
Given the questions it sounds like might want to check what funds your pension are invested in. Pensions usually have a default fund that isn't very high in equities and if you have many many years left to pension draw down you probably should switch your fund to a high equity fund.
 

Lisboa

Registered User
Messages
37
Hi Aristotle (et al), my funds are currently invested 50% in a High Growth Portfolio, and 50% with a Passive Global Equity Partial Hedge.

The High Growth Portfolio is currently invested in around 55% developed markets equity, 20% emerging markets equity, 5% emerging markets bonds, and the remaining 20% is scattered throughout equities, bonds, commodities, cash, property.

I'm mid 30's so they'll be invested for a good while yet.

Is this any good? Or should I review my portfolio options?
 

aristotle

Frequent Poster
Messages
777
I cant seem to find details of those funds online. If you have links to the funds post them up here.

Another thing is worth doing is your pension scheme should have an adviser that you can ask questions of, worth asking them about the funds you are in.
 
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