Pensions & Income Tax Deadline 31 October or 12 November 2015
About 450,000 people will have filed their tax return by the time the tax deadline hits in a few weeks.Which deadline applies to me ?Individuals who both pay and file their tax returns through the Revenue On Line Service (ROS) have until 12 November 2015 to pay a pension contribution and elect to backdate the income tax relief to the 2014 tax year.Those who do not qualify for the ROS extension must do this by 31 October 2015.What is meant by Backdating of Income Tax Relief – Personal Pension Plans, PRSAs & AVCs ?An individual who wishes to pay a pension contribution now and backdate relief against their 2014 income needs to do the following:1. Pay the pension contribution on or before the relevant return filing date – 31 October or 12 November 2015.2. Send their tax return to Revenue on or before the relevant return filing date – 31 October or 12 November 2015.What happens if I do NOT make my pension investment on time?Revenue will not permit tax relief to be granted in the preceding year where the individual has not elected to claim the tax relief in that tax year in their tax return or where the individual has not filed the tax return on time.Can Employees backdate Income Tax relief on AVCs or PRSA AVCs? AVC or PRSA AVC contributions paid before 31 October 2015 can be backdated to 2014 for income tax relief provided the individual is still in the same employment.An employee has until 31 October to:1. Pay a single contribution AVC to their main company pension scheme (if scheme offers this option), a PRSA AVC or through their existing AVC plan (if they have one), and claim income tax relief for the 2014 tax year.2. Send their tax return to Revenue, electing to backdate the pension contribution to the 2014 tax year.Be careful that relief has not been given in the current tax year – where the contribution is paid through payroll under the net pay arrangement income tax relief is automatic and is given in the current year.Who can claim Income Tax relief on AVCs or PRSA AVCs? Income tax relief on AVCs or PRSA AVCs can be claimed by individuals who are: • Employees – schedule E, PAYE earner & member of occupational pension scheme. • Directors – schedule E, PAYE earner & member of occupational pension scheme.Nelson Life, talk to us about pension, investment and financial planning - office@nelsonlife.ie / 091 44 11 88
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