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

21/09/2020 Posted by CERS Admin | Comments(0)

For those of us who pay tax, the 31st October is an important date in all of our calendars. It represents a last chance to get some money back from the “Tax Man” for 2019!

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 2020 you may get tax relief in respect of any unused tax relief for 2019 providing you claim this relief from the Revenue by the 31 October 2020.

An AVC Example

  • Additional Voluntary Contribution (paid 25 October 2020) €2,000
  • Reduction in 2019 tax bill (40% tax payer): €800
  • Actual cost to you of additional €2,000 into your pension: €1,200

  • The 2020 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 2020 in order to benefit from the higher rate of relief available at 40%.

    Extended Deadline for 2020

    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 10 December.

    If you have any queries on AVCs please contact the CERS Admin Team on info@cers.ie or click here to download an AVC application form.

    AVCs and Rocket Fuel

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