Tax credit adjustment after overcontributing to PRSA

Discussion in 'Pensions' started by Paul F, Feb 2, 2017.

  1. Paul F

    Paul F Registered User

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    20
    Hi,

    I have searched the forums but I couldn't find a reference to my specific question.

    I have a PRSA but I do not make monthly contributions. If I were to make a one-off contribution soon that were equal to 20% of my expected gross income for 2017 (I am 35), would I be able to get my tax credits adjusted so that I would receive tax relief on the contribution each month?

    (I essentially want to "over-contribute" to my PRSA but get tax relief each month as if I were making monthly non-salary-deduction contributions.) If the above is possible, how would I go about getting my tax credits adjusted?

    Thanks
     
  2. Merowig

    Merowig Frequent Poster

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    140
    Last edited: Feb 2, 2017
    First - in case you didn't maximse your 2016 pension contribution you can still do it and ask the pension provider to allocate it towards 2016 for tax purposes.

    As you make a once of payment not via payroll you will get a piece of paper from your pension provider which you sent to revenue and they will send over a cheque. So it will be a once of tax refund.
     
    Last edited: Feb 2, 2017
  3. Paul F

    Paul F Registered User

    Posts:
    20
    Thanks Merowig - I will be making a contribution that I backdate to 2016 shortly.

    But I wonder if anyone has any experience of making a one-off contribution in, say, February and getting Revenue to adjust your tax credits for the remainder of the year? So instead of making monthly contributions you just make one lump sum contribution, but in advance. Will Revenue adjust your tax credits for the entire year in this case?
     
  4. Markel

    Markel Registered User

    Posts:
    16
    I used to contribute monthly an amount and revenue were able to adjust my credits to make my net be (after the contribution I pay separately) as it were if it was deducted at source.

    Not sure with a one off though, I imagine if you call them they will advise.