In preparation for the pay and file income tax deadline of 31st October 2017 (If you file your tax return and pay tax online, the deadline is extended till 10th November 2017), you may wish to avail of pensions tax relief in respect of your 2016 earnings.
Contributions are relieved at your marginal tax rate generating an immediate saving of 40%. Self employed individuals cannot carry forward relief. You must either contribute in a given period or lose the available relief.
NB Revenue will not allow tax relief to be backdated against 2016 earnings if you have not elected to claim the tax relief for that tax year or if your tax return has not been filed on time.
The table below illustrates the maximum allowable contribution:
The pay and file deadline is 10th November (for online returns), make sure to lock in your tax savings by contributing to your pension.
If you would like advice on the above, or to make a pension contribution, get in touch.