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I am Self Employed.
Every year thousands of self-employed people across Ireland use their pension as a great way of reducing their tax lliability. It’s easy, efficient, and if you aren’t doing it, you should ask yourself why not! If you are self-employed you must calculate your tax liability and make a payment by 31 October 2023 in respect of your:
1. Final Tax Assessment for 2022
2. Preliminary Tax for 2023.
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I am an Employee.
If you are an employee who feels you are paying too much tax, the good news is that you may be entitled to a refund of some of the Income Tax you paid in 2022. This can be achieved by personally making a lump sum Personal Pension plan, PRSA or PRSA AVC contribution, depending on your employment circumstances, by 31 October 2023 and electing to backdate the tax relief to 2022, subject to the age-related limits below.
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I am a Proprietary Director.
If you are a Proprietary Director (i.e. a director who owns or controls more than 15% of the shares in your company), you are obliged to file self-assessment tax returns by 31 October in respect of last year, even if all of your income is taxed under the PAYE system. If your income includes non-PAYE income you must pay any balance of Income Tax, PRSI and USC outstanding from last year. You will also need to consider paying Preliminary Tax for the current year.
The tax deadline is fast approaching — now is the time to act and consider topping up your pension.
The tax deadline is fast approaching — now is the time to act and consider topping up your pension.
Tax Deadline of 31st October 2023
(or 15th November for online ROS users)
Make your pension contribution before the deadline and you can claim tax relief against your income tax for 2022. So, you pay less tax now and you have added to your retirement savings.
Additional Benefits
Tax free growth until your retirement
Tax free lump sum at retirement (plus further material tax savings)
Tax Savings and your Pension
1. Invest in your Pension €1000.00
2. Tax refund (up to 40% rate) €400.00
3. Net Cost of your Contribution €600.00
Even if you are making regular contributions to your pension savings, you may not be maximising the tax relief available to you. The age-related contribution limits mean you can save up to a certain percentage, based on your current age, and get maximum tax relief.
