Last Chance to Save Tax and Invest in Your Future!

news Oct 18, 2017

Last chance to save tax and invest in your future.
Planning for your financial future will give you peace of mind today. This week, our Expert
Retirement Planning Adviser, Denis Murphy, Premier Financial Services, discusses the options
for Individuals to invest in their pension and save tax on their contributions .

An Opportunity to Reduce your 2016 Income Tax Bill
Individuals who both pay and file their tax returns through the Revenue On-line Service (ROS) have until Friday 10th November 2017 to pay a pension contribution and elect to backdate the income tax relief against the 2016 tax year. Those who do not qualify for the ROS extension must do this by 31st October 2017.

There is no option to defer. If you do not take this opportunity, you will not get another chance to reduce your 2016 income tax liability.

How Much Can an Individual Contribute to a Personal Pension, PRSA, PRSA AVC or AVC?
For contributions paid in 2017 and set against 2016 earnings, an earnings cap of €115,000 applies for tax relief purposes to total contributions to PRSAs, personal pensions and employee / AVC contributions to occupational pension schemes.

Age % of Earnings
Under  30                   15%
30-39             20%
40-49             25%
50-54             30%
50-59             35%
60 and over  40%

Note:
1. The above limits include any employer contributions to a PRSA
2. The earnings limit does not apply to employer contributions to occupational pension schemes
3. For occupational pension schemes the total contributions (employer, employee & AVC) must be within overall Revenue maximum contribution limits.

Who Files a Self-Assessment Tax Return?
The self-employed, proprietary directors (those who own more than 15% of a company) and people with non-PAYE income are required to file self-assessment tax returns under the Pay and File system with Revenue.
To avoid interest and surcharges they must file a return by 31st October / 10th November 2017( ROS Online)
• File their 2016 Income Tax Return
• Pay any balance of income tax outstanding for 2016
• Pay preliminary income tax for 2017

Employees and directors in occupational pension schemes can also reduce their 2016 tax bill if they pay an AVC single premium on or before 31st October 2017 and file a return by 31st October 2017.

This Content of this column is generic in nature and is not meant to provide individual investment advice to the reader.
Before an investor considers any investment they should seek independent professional investment advice suitable for their
own personal circumstances.

Premier Financial Services is a registered trade name of PCS Financial Services (Kerry) Ltd.
PCS Financial Services (Kerry) Ltd. T/A Premier Financial Services is regulated by the Central Bank of Ireland

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