Tag: Tax refunds

Self Employed – Pension Funding

March 9, 2018

This is a very important area of tax relief combined with planning for your future. Please read our detailed article on Pension Funding which provides details of the maximum allowable pension contributions for tax purposes. There are now a variety of investment methods open to individuals for investment of funds via a pension structure. Tax relief at your top tax rate is available for contributions paid in and investment growth on your investment accumulates free of tax.

For selfemployed individuals there is a limit on the amount of pension contribution qualifying for tax relief in any one year. This depends on your age and level of earnings.
There is a very useful back dating arrangement allowed for the selfemployed, which gives time to examine your figures before you have to make a payment. You have until the 31st October after the end of the tax year in which to make a pension contribution and tax relief will be allowed in the earlier year. From a cash flow point of view there is almost double tax relief obtained for your first lump sum pension contribution.

Our Pension Contribution Calculator will do the figures for you and show the maximum amount you can put into your pension for tax relief purposes. If you are making regular contributions throughout the year it will also show you how much of a pension contribution top up you can make to obtain tax relief in the previous tax year.

 

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PRSI Refunds

April 29, 2013

 

PRSI Refunds for Years up to 2010

Employees who are not in a company scheme but make their own pension contributions directly to an insurance company may be entitled to a refund of PRSI as well as income tax relief on the pension contributions. The relief has been abolished from 2011 onwards. This PRSI refund claim is often overlooked as it must be claimed separately through the office of the Collector General in Limerick and not through your normal tax return.

A simple claim form – Application for PRSI refund in respect of Pension Contributions – must be completed and sent to the Collectors General office in Limerick. This form can be downloaded from the Revenue website.

The Tax implications of emigrating from or immigrating to Ireland

April 29, 2013

This tax treatment applies to people coming to reside here or emigrating during the tax year.

Dealing first with individuals coming to reside here, they will normally be regarded as residents here for tax purposes from the date of arrival and liable to pay income tax on all income arising from that date on. They get the benefit of a full years tax credits although they may only be resident here for part of the year. This benefit applies provided the person will be tax resident here in the following tax year.

For individuals emigrating during the year the reverse treatment applies. They will be given the benefit of a full years tax credits for the year in which they leave. For individuals taxed under the PAYE system this would generally give rise to a tax refund being due. Their PAYE would have been calculated by dividing their tax credits evenly throughout the tax year. However if they emigrate half way during the year they have a halfyears unused tax credits to claim against their earnings up to the date of leaving. This relief only applies provided the person will be nonresident in the following tax year.

For anyone emigrating as our systems are all online you will be able to use them from wherever you are to complete your tax return and claim your tax refund.

Ceasing Work

April 29, 2013

If you give up work or are unemployed for a period of time you may be entitled to a tax refund for the particular tax year involved. This will depend on what other earnings you may have after ceasing work, e.g. social welfare benefits. You do not have to wait until after the end of the tax year to claim a refund. This can be done on an ongoing basis during the tax year by contacting your tax office.

People who work on a temporary basis e.g. students doing summer work may be entitled to a tax refund after they cease work. This refund can be claimed through your tax office. You will require a form P45 which your employer should have given to you when you ceased work. You send this to your tax office and they will deal with your refund claim.