Online Deadline Extended until 10th December
For those of us who pay tax, the 31st October is an important date in all of our calendars. There is good news for those who pay and file via ROS, as this deadline has been extended until the 10th December.
Making Additional Voluntary Contributions (AVCs) to your pension will entitle you to claim tax relief for the 2019 tax year.
How do AVCs work?An AVC Example
For example, if you pay a lump sum AVC by 31st 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 31st October 2020 (or the 10th December if you pay and file via ROS).
Additional Voluntary Contribution (paid 25 October 2020) €2,000Reduction in 2019 tax bill (40% tax payer): €800Actual cost to you of additional €2,000 into your pension: €1,200
The 2020 rates of income tax are:
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%.
Get in touch
If you have any queries on AVCs please contact the CERS Admin Team on email@example.com or click here to download an AVC application form.