Tax saving on pensions

[Castlelyons]

My employer deducts pension contributions directly into defined contribution pension.
I know I get tax relief on this at the higher rate, but my question is where do I see this reflected in my statement of liability. Or rather should I see this reflected in my statement of liability. Or in other words, where's the paper trail that shows that I am getting this tax saving?

 

[Steven Barrett]

You get the tax relief at source. the contribution you put into your pension isn't liable to income tax. The difference between your Gross Pay and Pay for Income Tax should equal the amount that you paid into your pension for the year.


Steven
www.bluewaterfp.ie

 

[Castlelyons]

Ah I see that now, thanks. It's not noted in statement of liability, but when I go to Employment Details Summary, I can see the pension contributions are reflected in the difference between Gross pay and Pay for Income Tax. Thanks Steven.

 

[Protocol]

Yes, that's because the starting line on a P21 is taxable income, after pension conts.

So the first line on your P21 SoL will be below the total pay on your payslips.