Pensionable Employment Query

C

caljaclew

Registered User
Messages
25
Hi, Looking for advice.

I'm a company director (50% shareholder) paying Class S PRSI contributions.
I want to set up a pension but not a company paid one as I'd rather other shareholder was not aware. Although there is not a pension in place at the moment one could be set up. This is where I'm looking for guidance. How does the definition of non pensionable employment apply here. Do I have to do a company paid pension as it's possible to do one or can I do a personal pension as there is no pension scheme in place at present.

Also If I put for example 10k(to make maths easy) in a personal pension before the deadline will I get a tax refund of 4k on last years tax on sending proof of the contribution to the provider.

Thanks in advance,
 
You can do a personal pension if you want. The main differences are:

  1. You can put more into a company pension. Under personal pensions, you are limited to a % of salary
  2. Under a company arrangement, the company makes the contribution without any tax liability for you. Under the personal arrangement, you get the income tax relief but you are still liable to PRSI & USC on the contribution.
If a company pension is set up and you join it, you cannot claim tax relief on any contributions to a personal scheme if the salary is linked to that employment.

Finally, yes, you get 40% income tax relief but remember, you still have to pay the PRSI and USC.

Steven
www.bluewaterfp.ie
 
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