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31 October is an important date in all of our calendars...

16/10/2017 Posted by CERS Admin | Comments(0)



31 October is an important date in all of our calendars. It represents a last chance to get some money back from the taxman for 2016!

This is the final date on which you can claim tax relief on backdated Additional Voluntary Contributions (AVCs). If you pay a lump sum AVC by cheque and claim tax relief on this AVC by 31 October you can get tax relief in respect of the previous calendar year.

For example, if you pay a lump sum AVC by 31 October 2017 you may get tax relief in respect of any unused tax relief for 2016 providing you claim this relief from the Revenue by the 31 October 2017.

Example

Additional Voluntary Contribution paid 25 October 2017              €2,000

Reduction in 2016 tax bill (40% tax payer):                                                   €800

Actual cost to you of additional €2,000 into your pension:              €1,200

The 2017 rates of income tax are:

Standard Rate

20%

Higher Rate

40%

 

Subject to affordability, individuals on the higher rate of tax should consider maximising their pension contributions before the end of 2017 in order to benefit from the higher rate of relief available at 40%. 

Please note that the Revenue deadline is extended for members who complete their tax return online using the Revenue Online Service (ROS). This year the extended deadline is Thursday 16 November.

If you have any queries on AVCs please contact the CERS Admin Team on info@cers.ie

 

 

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