PRSA Tax Relief

I

IanDublin

Guest
I opened a PRSA with in Sept 05, a few months after finishing college.
At the time my wages were €24k. So saving the max 15%, I was contributing €300 per month to the PRSA or €3600 per month. Ive bought my first home now so I reduced the payments to €100 per month, just to keep it going.
Looking at my payslip this month,im still being given the tax relief on the €3600 per year as opposed to the current value of €1200 per year.
Will the PRSA provider inform revenue of my lower contributions?
Or will Revenue just check the statemtent at the end of the year and ill have to pay the difference?

Thanks in advance
 
If you are getting tax relief through the PAYE system, contact revenue now and tell them that you have reduced your payments. Otherwise you will have underpaid your tax at the end of the year.
 
If you are making the PRSA contributions through payroll then it's very odd that the adjustment for the lower contribution did not happen automatically. If I was you I'd ask my employer why. And I would double check all other figures on the payslip if they have made this seemingly basic mistake!
 
ClubMan said:
If you are making the PRSA contributions through payroll....
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Very unlikely given that it's a PRSA by all accounts. And if it were a standard AVC the tax relief would presumably have been given at source so the relief would not be obvious to you from your payslip.

If you didn't claim for relief in the year in which you set it up then there shouldn't be any fall in relief in the year in which you reduce the contribution level (i.e. the relief this year is for last year's contributions).

However, if the Revenue are giving prospective relief (i.e. relief for the current year's contributions) you need to inform the Revenue of the reduction in contributions or you'll underpay this year.

I must say that your financial long-sightedness (if you know what I mean) is a lesson to us all....a fully funded PRSA within months of leaving college and a house purchased within a year confounds the stereotypical portrayal of your generation as the most profligate ever.
 
oysterman said:
Very unlikely given that it's a PRSA by all accounts.
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Not impossible but I see now that the original poster may actually be contributing to a standalone PRSA and getting a tax credit for "standalone" contributions. In this case (as with any tax issues) the onus is on the individual to inform Revenue of the change in circumstances (i.e. reduction in contribution) and have the tax relief adjusted accordingly including to take account of any excess relief that may have been mistakenly granted/claimed to date.

Also - PRSI relief should be claimed separately:

Claiming PRSI relief on standalone PRSA contribution
 
Its my own private PRSA as theres no pension scheme in work. So I pay it directly from my EBS account to the EBS. Ill ring the Revenue and let them know that I have reduced my contributions.

Thanks for the advice!
 
Make sure that you also claim PRSI relief as well so!

Probably better to write to Revenue to get things on paper. Include details of the changes and any supporting evidence (e.g. copy of new PRSA1 cert for the reduced contribution if applicable or copy of a letter from your PRSA provider confirming the reduced contribution). You may also need to include a copy of your P60 and have Revenue do a P21 balancing statement for that tax year to deal with any over or under payment of tax due to incorrect relief being claimed.
 
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