Hi All
Newbie at this so please be gentle!
About me:
33 year old single, no dependents, no pension scheme... But I want to start one - soon!
My SSIA will mature at end of April with approx 11K
Salary last year was 46.5K on which i paid €9394 in Tax
(made up of 6412 at lower rate, 6368 at higher, 3387 tax credit)
My salary this year is 52.5K so i presume this means i'm not entitled to the Govt 2.5K offer...
So my question is:
Can i invest €9394 from my SSIA in an AVC for 2006 (ie. last year)and write this off against my tax?
If so will i get a cash refund from the Revenue for this, or will it be added to my PRSA, or what will happen to the money?
If its a refund, What refund would i be entitled to?
Is it €9394 * 0.42 = €3945
or would it be (Lower rate-tax credit x 0.21)+(Higher rate x 0.42)=3309
Or is it that i should only invest (Salary-Standard rate cut off point 32k)x 0.42 =6090 and claim 0.42 back on that = 2557
Or some other weird and wonderful combination?
(or maybe i'm just looking for free money where it doesn't exist!)
Thanks in advance to anyone who answers