Tax return from Pension payment

[JaneB2022]

Hi,

I have recently received redundancy and I am considering paying a lump sum into my pension.

Will I be able to claim tax back on this in January or will it apply to my tax credits for 2023?

It is unlikely I will work in 2023 due to childcare so a tax credit in 2023 will not be useful to me.

 

[Steven Barrett]

If the employment you are claiming the tax relief against is from the job that you were made redundant from, it is too late. You have to have made the payment while a member of that scheme and in employment. You cannot make a contribution after leaving a company in respect of income earned while there.

If you have other earned income from another employment this year, you can claim tax relief in relation to those earnings. If you are making a lump sum payment, you can claim the tax relief once you receive your RAC from the life company.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[fayf]

Stephen,

If you are about to receive an ex gratia payment as part of a redundancy package, are you able to use the full “taxable element” of the package, and make a one off AVC (prior to termination date, so while still a member of the scheme) based on that taxable part of the package, subject to the usual age related limit, and the 115k cap ?

 

[JaneB2022]

Thanks for the reply Stephen.

If I add the lump sum in regardless of me not receiving a tax benefit from it, could my husband receive a tax benefit from it when he is doing his tax returns (self employed) or would the best solution be to add into his pension directly?

Thanks