Questions and Answers

Pensions

I am in my early 30’s and have not made any pension contributions to date. I currently have a salary of €80,000. What is the maximum amount in can contribute and what tax relief can I get on this?

Although Budget 2013 did reduce the tax relief that can be claimed on pensions the good news is that this does not take affect until 1^st January 2014.

Currently a person in their 30's can make a pension contribution of up to 20% of their income and claim tax relief on this payment. This means you can make a pension contribution of €16,000 in both 2012 and 2013 and claim a tax refund of up to €6,560 on each payment.

From the 1^st January 2014 the maximum amount you can contribute will be reduced to €12,000. This will result in a tax refund of €4,920 – a reduction of €1,640.

We provide tax and accountancy advice across the country. Contact us today to discuss your needs.

Date published 21 Feb 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?