Employees – How to backdate Income Tax Relief

EMPLOYEESHowto backdate Income Tax Relief
An Opportunity to Reduce your 2014 Income TaxBillIt’sself assessment time for self employed individuals and Proprietary Directors.Many will be making pension contributions now to reduce their tax liability for 2014.HoweverPAYE Employeeswho pay tax at source through their employercanalso do this and it is something that is great under utilised! AVCs or PRSA AVCs paid before31stOctober 2015can be backdated against income tax paid in2014,eg once off AVC contribution of €10,000, that you have elected to be backdated to the 2014 tax year, if you pay the higher rate of tax the Revenue will refund €4,100 (41% tax rate in 2014) back into your bank account, while you have boosted your pension fund by €10k!!!It is a very simple process to get back tax that you paid last year!You simply need to:Askyour Financial Broker to assess how much tax relief you can claim, based on your age.Pay the contribution to the life company or PRSA provider on or before 31stOctober.PAYEEmployeesneed to completeIncome Tax Form 12(copy on our website).This can also be done online through the PAYE Anytime usingeForm12. There is no need to send your pension Certificate to Revenue at this time but should be retained in case it is requested in the future.PAYE Employees not filing online should send the paper form to theirlocal Revenue Office.Let us know if you would like more information and just be mindful if the deadlines!!31 October for paper tax returns and 12 November for ROS (online) submissions.Ciara Murphy QFA.Ronan McCarthy Life and Pensions Ltd.Tel: 051-391 777/086-085 4344