Tax on Pension payments to an Occupational Pension Scheme

H

Heraldo

Registered User
Messages
27
I have a situation where I have not being receiving 40% tax relief through my Employer's Payroll and am only receiving 20% even though I am liable to 40% tax on my total income. I have been trying to see how to claim the remaining 20% tax relief on the ROS Online Form 11. Would greatly appreciate help
 
Are you sure that you're not getting confused by how the relief is normally granted through extension of your standard rate cut-off point (SRCOP) and also the awarding of a standard rated tax credit?

How do revenue give tax credits for personal pension?

I was checking my tax credits for 2008 on ros.ie and it seems that revenue have given me a tax credit for my monthly pension premiums though not for the full amount (the premiums are within the revenue percentage limits for my age) but they have also increased my SRCOP and together with the tax...
www.askaboutmoney.com
 
The easiest thing you can do is prepare a Form 11 return using the "Return Preparation Facility" tool on the Revenue website. It is an offline tool. It replace ROS Offline. However, ultimately you can file a return using the form you have prepared offline if you are registered.

You can prepare a hypothetical return and put in the information on all your income, your pay liable to tax from your employment income and your pension contributions and your other income. If the ROS system doesn't allow any greater relief than the income from the specific employment then it will be evident.

Generally speaking, pension contributions can only be tax relieved in respect of employment income or earned income (i.e. from a trade), it is not possible to make pension contributions in respect of passive income. If you had rental income that brought your total income into the higher bracket, I would be surprised if that resulted in you getting tax relief at 40% on your employment income.

I've never tested the principle but it could be the case that if the employment income is low then the pension contributions tax relief is limited to income from that specific employment, but my suggestion would be that you should test it.
 
Villaines said:
The easiest thing you can do is prepare a Form 11 return using the "Return Preparation Facility" tool on the Revenue website. It is an offline tool. It replace ROS Offline.
Click to expand...
Yes, this can be done.

I have tried this a few times and found it awkward. It needs to be backed up manually or the inputted data is lost.

I have tried to save the data a few times and the save button did not work. It seems to to very selective about what operating systems are allowed.

It is possible to experiment using the actual ROS form 11.
The data in the prepopulated form can be altered to check how tax relief from pension contributions are applied. You can go to the calculate page and see the result of your changes.

Provided you don't file and submit no data is sent to Revenue.

You can go back to the file a tax return section in ROS and in the section where your form 11 in progress is shown, you can select delete. This will revert all the data in form 11 back to the origional Revenue prepopulated figures.

This can also be done for previous years form 11.
You can select resubmitt to correct an error and change data in the form.

Again go back to the submit a form 11 section and delete the form in progress and the form 11 will revert to the same data that was submitted to Revenue.
 
Last edited:
Villaines said:
Generally speaking, pension contributions can only be tax relieved in respect of employment income or earned income (i.e. from a trade), it is not possible to make pension contributions in respect of passive income. If you had rental income that brought your total income into the higher bracket, I would be surprised if that resulted in you getting tax relief at 40% on your employment income.
Click to expand...

The earned income is used to determine the amount of pension contributions that are allowed tax relief.

The allowed amount is then tax relieved at a persons marginal tax rate. This can be 40% even if the earned income on its own would not cause the person to enter the 40% tax band.

The pension contributions reduce the total taxable income.
If the reduced income after the the pension contributions are deducted is still in the 40% band, then all pension contributions have been relieved at 40%.
 
Last edited:
You must log in or register to reply here.
Back
Top