Tax Credit for my PRSA

G

goose

Registered User
Messages
58
Hi There,

I have been self employed for the past 5 years.
During this period I sent up my PRSA and i completed my tax return each oct and offset my pension against my income.

Now as of 1st Jan 07 I have moved into full time PAYE employment.
The new company has a pension scheme but I have decided not to enter this scheme as I think my current scheme is currently doing better.

Is it possible to inform Revenue of my monthly contributions allowing REvenue to adjust my tax credits and inform my employer of my new tax credits. thereby saving me having to complete a tax return at year end for my pension ? also I would not be out of pocket each month ?

Any help would be appreciated.

Regards,
Darragh
 
goose said:
The new company has a pension scheme but I have decided not to enter this scheme as I think my current scheme is currently doing better.
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Will you miss out on employer contributions on your behalf if you don't join? If so then you should make sure that this is justified and that participating in the scheme, availing of the employer benefits and possibly using your PRSA as an AVC vehicle might not be a better approach.
Is it possible to inform Revenue of my monthly contributions allowing REvenue to adjust my tax credits and inform my employer of my new tax credits. thereby saving me having to complete a tax return at year end for my pension ?
Click to expand...
I don't think so. Unless your employer processes your pension contributions via payroll then I think that you have to claim tax (and don't forget PRSI!) relief manually.
 
From the pensions board website -

Personal contributions
Contributions paid to a PRSA will benefit from income tax relief at an individual’s highest rate of tax. Contributions paid by an employee via payroll will benefit from automatic tax relief and relief will also be given from PRSI and the health levies, if you pay these charges. If you contribute directly to a PRSA you will need to reclaim tax relief directly from the tax office. If you are an employee then tax relief will be given though the PAYE system as an additional tax credit. If you are self-employed tax relief may be claimed on your tax return.

I did read somewhere that you can inform revenue of your monthly contributions and they will adjust your tax credit in advance so that you are not out of pocket. Hopefully someone will be able to confirm or deny this!
 
I can't see an employer who already provides an occupational scheme faciliting an individual employee to process his/her standalone PRSA payments through payroll but I suppose it could be possible in some situations.
 
Hi All,

Clubman: I should not miss out on my employers contribution they are pretty good this way.

I asked my pension provider they same question re: Tax Credits, they have said all I need do is inform my inspector of taxes and a new Tax Credit Cert will be issued, hopefully this is the case.

surely someone else can encountered this ?

Darragh
 
Sorry - my first contribution may have been a bit confusing. By "manually" claiming relief I meant either at year end or by asking Revenue to adjust your tax credits to take account of regular "standalone" pension contributions. If you are making regular contributions to a pension out of net/after tax income (i.e. not via payroll) then you can indeed furnish Revenue with details (e.g. the PRSA1 cert outlining your regular monthly contributions) in order to have them adjust your tax credits to give you relief that way. However you will still need to claim PRSI relief manually as outlined above. Obviously if your circumstances change (e.g. you change or stop contributions) then you need to keep Revenue informed so that your tax credits are kept up to date.
 
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