Pension Tax Savings Deadlines. Technical Guide 2013
|
|
- Bernadette Cannon
- 7 years ago
- Views:
Transcription
1 Pension Tax Savings Deadlines Technical Guide 2013
2 Contents Introduction 2 Self-employed (Sole Trader) 3 Preliminary Tax 3 Can the Preliminary Tax and the Final Tax Assessment Bills be reduced? 4 Must the pension contribution be made before October 31 st this year in order to 6 backdate the relief? How does the payment of a Personal Pension/PRSA contribution before October 31 st affect 6 those self-employed individuals who opt for Basis A in calculating their Preliminary Tax Bill? Direct Debit Preliminary Tax for the Self-employed 6 Employees (including Proprietary Directors) 9 Employer Sponsored Pension Scheme Members 10 Non-pensionable Employment 11 Proprietary Directors 12 Dual Income Sources 13 Note: This guide is based on our understanding of tax law and practice as at September Individuals are advised to seek expert taxation advice with regard to the tax saving ideas mentioned in this guide.
3 Introduction October 31 st is a very important date for the self-employed, and employees (including proprietary directors), who wish to reduce their previous year s income tax liability. In addition, with the development of the Revenue Online Service (ROS) in recent years, a date in November (in 2013 this is Thursday, November 14 th ) has become equally important for those with self-employed earnings who file and pay online. In this guide, we look at how retirement savings/pension contributions made before October 31 st can be used to reduce the income tax liability in respect of the previous tax year for both: 1. the self-employed; and 2. employees (including proprietary directors); and, before November 14 th for those with self-employed earnings. We also look at how retirement savings/pension contributions paid by employees, including proprietary directors, can be used to reduce their tax liability in the current year. Notes: 1. Wherever October 31 st is referred to in these notes those who file AND pay online can substitute November 14 th (2013). 2. As Capital Gains Tax is not directly affected by pension contributions, this is not covered in the guide. 3. The Universal Social Charge (USC) and PRSI, have not been taken into account in any of the example calculations included in this guide as relief for pension contributions paid by an individual is not granted for the purposes of the USC or PRSI. 2
4 Self-employed (Sole Trader) By October 31 st each year self-employed individuals paying Income Tax under the self-assessment system must calculate their liability in relation to: 1. Preliminary Tax for the current tax year (i.e. 2013); and 2. Their Final Assessment of Income Tax, PRSI and USC liability for the previous tax year (i.e. year ended December 31 st 2012). The total liability must be calculated, the income tax return must be submitted and the total amount due must be paid by the relevant date. Preliminary Tax Preliminary Tax is the individual s estimate of his/her Income Tax, PRSI and USC liability for the current year (2013). Unless he/she has authorised the Collector-General to collect Income Tax by direct debit, the minimum amount of Preliminary Tax he/she must pay to avoid interest charges is the lower of: Basis A: 90% of the final liability for the current tax year (i.e. 2013) and Basis B: 100% of the final liability for the immediately preceding year (i.e. 2012) Note: Any given tax year s liability is calculated on the profits arising in the self-employed person s business year ending within that tax year (e.g. if the business year ended on June 30 th, the liability for the 2013 tax year is calculated on the profits generated from July 1 st 2012 to June 30 th 2013). 3
5 Basis B Example (Self-employed, 41% taxpayer, age 45) Final Assessment liability for 2012 tax year 25,000 Preliminary Tax paid in October ,000 Balance of 2012 s liability due October 31 st ,000 Preliminary Tax due October 31 st 2013 (based on 100% of 2012 tax year s liability) 25,000 Total tax payment due October 31 st 2013 (i.e. 7,000 plus 25,000) 32,000 Q: Can the Preliminary Tax and the Final Tax Assessment Bills be reduced? The short answer to this question is a very emphatic Yes. Self-employed individuals liable to Income Tax under Schedule D, Case I and II (i.e. trades and professions) and Case III (i.e. trades or professions exercised wholly outside the State) are entitled to claim relief against Income Tax in respect of Personal Pension and/or Personal Retirement Savings Account (PRSA) contributions up to the following limits for the 2012 and 2013 tax years: Age (during relevant tax year) % of Net Relevant Earnings Under 30 years of age 15% years of age 20% years of age 25% years of age 30% years of age 35% 60 years of age and over 40% Notes: 1. Net Relevant Earnings (NRE) are capped at 115,000 for the purpose of calculating allowable contribution amounts in the 2012 and 2013 tax years. 2. Age is attained age on the last day of the relevant tax year. 4
6 The regulations governing tax relief on Personal Pension and PRSA contributions allow self-employed individuals to elect to backdate to the preceding tax year for tax relief purposes any contributions made between the end of the previous tax year and October 31 st in the current year (providing Revenue have been notified of the election to backdate the income tax relief to the preceding tax year by 31 st October as well). As a result, they may become entitled to a refund of tax paid in relation to the previous tax year. Basis B Example continued from above (Self-employed, 41% taxpayer, age 45) Net Relevant Earnings in 2012 tax year 80,000 Personal Pension Contribution paid before October 31 st 2013 (25% of NRE for 2012) 20,000 Final Assessment for 2012 tax year reduced to: i.e.( 25,000 less 41% of 20,000) 16,800 Refund of tax due from the Revenue Commissioners on October 31 st 2013 is 1,200 (i.e. 18,000 Preliminary Tax paid in October 2012 less 16,800 Final Assessment). In this example the self-employed individual can also reduce his/her Preliminary Tax bill for the current year, because this bill is based on 100% of the previous year s liability. In effect, this means a double tax advantage in the current year. Preliminary Tax Due October 31 st 2013 (i.e. 100% of Final Assessment for 2012) 16,800 A reduction in the Preliminary Tax payable of: 8,200 Total Tax Liability Due October 31 st 2013 (i.e. 16,800 less 1,200 refund due) 15,600 Total Tax Payment Reduction October 31 st 2013 (i.e. 32,000 total liability [see page 3] less 15,600 above) 16,400 Thus a retirement savings contribution of 20,000 results in an immediate tax saving of 16,400 a double tax advantage. Of course, this double tax advantage occurs only in the first year of retirement funding and will eventually even out to one year s tax advantage for each year s contribution. However, there is also the advantage from a cash-flow perspective that the payment of tax has been deferred to a later date. 5
7 Q: Must the pension contribution be made before October 31st this year in order to backdate the relief? Yes, the contribution must be made and the relief claimed by October 31st in order to receive the backdated relief on it. If the self-employed individual makes a once-off contribution by October 31st he/she can then commence a monthly-paid plan from November 1st, ensuring a full year s contribution is paid by October 31st next year. If he/she finds that his/her earnings for the current tax year are greater than assumed when calculating the monthly contribution, then he/she can make a once-off contribution to the plan before October 31st next year up to the age-related maximum allowable and subject to the earnings limit, and obtain backdated tax relief on it. Monthly contributions are probably the most satisfactory method of making contributions from a cash-flow point of view. Q: How does the payment of a Personal Pension/PRSA contribution before October 31st affect those self-employed individuals who opt for Basis A in calculating their Preliminary Tax Bill? Once a pension contribution is used to reduce the preceding year s tax liability, it would be unlikely that the individual involved would use Basis A (i.e. 90% of the final liability for the current year) for calculating the Preliminary Tax liability. This would only be likely to happen where the individual has suffered a substantial drop in earnings in the current year. Where an individual does opt for Basis A any retirement savings contributions paid before October 31st of the current year (i.e. 2013) can be backdated for tax relief purposes and used to reduce their final assessment for last year (i.e. 2012). However, they will not automatically reduce their Preliminary Tax bill for the current year, because the calculation of the bill is not based on the previous year s reduced liability. But, if they are committed to paying further contributions before October 31st next year, they can reduce the Preliminary Tax due on October 31st of the current year. For example, starting a monthly contribution on November 1st 2013 will ensure a full year s pension contribution will be paid before October 31st 2014 and these monthly contributions can then be taken into account in calculating this year s Preliminary Tax in anticipation of an election to backdate the contributions made in 2014 to the 2013 tax year. Direct Debit Preliminary Tax for the Self-employed Under the income tax self-assessment system, in order to lessen the impact of Preliminary Tax by lump sum payment, the Revenue Commissioners grant self-employed individuals the option to pay their Preliminary Tax bill by monthly direct debit. Direct debit payments are credited against the Preliminary Tax due by October 31st of the calendar year in which the direct debit payments are made. That is, payments made in 2014 will be credited against the Preliminary Tax payment due in the 2014 tax year. 6
8 For those who already use the scheme, deductions can start each year on January 9th, although the Revenue Commissioners are prepared to accept deductions commencing on the 9th of any month up to May 9th. The total sum payable must be paid by the following December 9th. When deductions start in January, the total sum payable will be paid by twelve equal instalments, while if they start in May, for example, there will be eight equal instalments. Applications should be made online through ROS (Revenue Online Service), or for those who are not ROS-registered, application forms must be returned to the Collector-General s Office in Sarsfield House, Limerick, by the last day of the month preceding the month in which the deductions are to commence (e.g. April 30th 2014 for May 9th 2014 deduction commencement). Those availing of the scheme for the first time are allowed to make a minimum of three payments in the first year only, October, November and December - and the necessary documentation must be completed by September 30 th. For direct debit scheme participants, a third basis for the calculation of the Preliminary Tax to be paid may also be used (Basis C): Basis C: 105% of the pre-preceding tax year s liability (i.e for 2014 payment of tax). This option does not apply where the Income Tax payable for the pre-preceding year was nil. Where a self-employed individual opts to pay Preliminary Tax under the direct debit scheme for 2014 for example, he/she can reduce his/her preliminary tax payments in 2014 under Basis C by making a lump sum retirement savings contribution before October 31 st in the current year (i.e. 2013) as per the examples shown earlier. BASIS C EXAMPLE Before Pension Contribution of 20,000 Total self-assessment bill for 2012 tax year 25,000 Twelve monthly payments due in respect of 2014 Preliminary Tax (i.e. 25,000 x 105% 12) payable January to December 2014 inclusive 2, After Pension Contribution of 20,000 (paid by October 31 st 2012) Total self-assessment bill for 2012 tax year 16,800 Twelve monthly payments due in respect of 2014 Preliminary Tax (i.e. 16,800 x 105% 12) payable January to December 2014 inclusive 1,470 7
9 In addition to making a pension contribution before October 31 st 2013, commencing monthly contributions to a pension plan effective from November 1 st should also be very attractive to those who opt for the direct debit Preliminary Tax scheme. By commencing monthly pension contributions from November, the taxpayer will ensure that he/she will have paid a full year s contribution by October 31 st next year to offset against the 2013 final assessment and thus reduce his/her direct debit Preliminary Tax payments in the 2014 tax year. 8
10 Employees (Including Proprietary Directors) An employee paying Income Tax under the PAYE (Schedule E) system is entitled to claim relief against Income Tax on his/her personal retirement saving contributions at his/her marginal rate up to the following limits for the 2012 and 2013 tax years. Age (during relevant tax year) % Net Relevant Earnings Under 30 years of age 15% 30 to 39 years of age 20% 40 to 49 years of age 25% 50 to 54 years of age 30% 55 to 59 years of age 35% 60 years of age and over 40% Notes: 1. Net Relevant Earnings (NRE) are capped at 115,000 for the purpose of calculating allowable contribution amounts in the 2012 and 2013 tax years. 2. Age is attained age on the last day of the relevant tax year. In addition, the tax relief on certain pension contributions that he/she makes before October 31 st in any year may be backdated to reduce his/her tax liability for the previous tax year. The individual must notify his/her tax office before October 31 st of the current year (i.e. 2013) of his/her intention to backdate the relief to the previous year (i.e. 2012). The rules regarding the type of pension contract available depend upon whether he/she is a member of an employer sponsored pension scheme or is in non-pensionable employment. 9
11 Employer Sponsored Pension Scheme Members (including Public Sector Superannuation Scheme members) It is important to note that PRSA arrangements where the employer is making contributions on behalf of the employee(s) are not employer sponsored pension schemes. October 31 st Deadline Tax relief on any contributions that are special contributions under the terms of the Revenue Pension Practice Notes, paid by the scheme member between January 1 st and October 31 st may be backdated to the preceding tax year. A special contribution is a once-off contribution to a new contract or to an existing regular or single premium arrangement. For example, a 53 year old who earned 70,000 in 2012 and already contributes 10% of earnings to his occupational pension plan, and now wishes to enhance his expected retirement benefits, could contribute 14,000 (i.e. 20% of earnings) by way of a special Additional Voluntary Contribution (AVC) or a special PRSA AVC (including Standalone PRSA AVC*). This would reduce his Income Tax liability for 2012 by 5,740 (i.e. 41% Income Tax relief). Note: 1. Tax refunds can be claimed by the individual through informing his/her tax district by October 31 st of the election to backdate the relief. The relevant tax relief certificate (i.e. RAC, PRSA, AVC or PRSA AVC) should be retained by the individual as proof of payment in the event of a Revenue audit. In making this contribution, the taxpayer would need to ensure that the maximum allowable retirement benefits are not likely to be exceeded. December 31 st Deadline An individual employee who is a member of an Occupational Pension Scheme can make contributions to an AVC arrangement or PRSA AVC plan (including a Standalone PRSA AVC*) by salary deduction before December 31 st this year and receive immediate relief from Income Tax only, under the net pay arrangement. In this event, there is no need to make a claim for this relief to the Revenue. The relief will be subject to the maximum contribution limits and earnings cap as outlined on page 9. * Standalone PRSA AVCs allow pension scheme members (including Public Sector Superannuation Scheme members) to use PRSAs to make Additional Voluntary Contributions independently to enhance their retirement benefits. He/she could also make a PRSA AVC contribution by cheque and receive the Income Tax relief by submitting the tax certificate to his/her tax office. In making this contribution the taxpayer needs to ensure that the maximum allowable retirement benefits are not likely to be exceeded. 10
12 Non-pensionable Employment An employee who is not a member of an Occupational Pension Scheme is considered to be in nonpensionable employment, even if his/her employer is contributing to a Personal Retirement Savings Account (PRSA) on his/her behalf. October 31 st Deadline The tax relief on any contributions that an employee in non-pensionable employment makes to a Personal Pension and/or a PRSA between January 1 st and October 31 st may be backdated for tax relief purposes to the previous tax year. For example, a 45 year old who earned 70,000 in the 2012 tax year and who is currently contributing 300 per month by direct debit to a Personal Pension could contribute a further 13,900 [i.e. ( 70,000 x 25%) ( 300 x 12)] to a Personal Pension or a PRSA plan before October 31 st 2013 and reduce his/her tax liability for the 2012 tax year by 5,699 (i.e. 41% Income Tax relief on 13,900). He/she can also backdate the relief on his/her monthly contributions of 300 per month paid between January 1 st and October 31 st 2013 to the 2012 tax year, if he/she so wishes. This tax refund can be claimed by making a Return of Income for the previous tax year. Notes: 1. Tax refunds can be claimed by the individual through informing his/her tax district by October 31 st of the election to backdate the relief. The relevant tax relief certificate (i.e. RAC, PRSA, AVC or PRSA AVC) should be retained by the individual as proof of payment in the event of a Revenue investigation. 2. Where an employer is making contributions to an employee s PRSA, the employer s contribution is treated as a salary payment to the employee (subject to PAYE and USC), but is not liable to PRSI. The tax relief limits as detailed on page 9 apply to the employee s total income including the employer s contributions and the employer s contributions must be taken into account when calculating the employee s maximum contribution for tax relief purposes. Example: Employer age 45, earnings 95,000, employer s PRSA contribution 5,000. Maximum employee contribution 20,000 (i.e. 25% of 100,000 less 5,000 employer s contribution). 11
13 December 31 st Deadline An individual employee can make contributions to a PRSA or to a Personal Pension by salary deduction at any time before December 31 st this year and receive immediate relief from Income Tax only under the net pay arrangement. In this event, there is no need to make a claim for these reliefs to the Revenue. The relief allowed will be subject to the maximum contribution limits and earnings cap as outlined on page 9. He/she could also make a Personal Pension or PRSA contribution by cheque and receive Income Tax relief by returning the tax certificate to his/her tax office. Proprietary Directors Proprietary Directors i.e. directors who own or control more than 15% of the shares in a company are obliged to file self-assessment tax returns by October 31 st each year with the Revenue Commissioners in respect of the preceding tax year. If their income in 2012 included non-paye income they must also pay any balance of Income Tax, PRSI and USC outstanding from They must also pay Preliminary Tax on their non-paye income for the current tax year (i.e. 2013). Failure to file a return and to pay all outstanding taxes will result in a surcharge on the full tax payable for the year, regardless of PAYE or any other tax already paid. Where a liability to additional tax arises, the option of backdating relief on PRSA/pension contributions made before October 31 st, and receiving relief from Income Tax in respect of 2012 relevant earnings, as outlined above for employees may be attractive. Alternatively, a Proprietary Director may make a once-off contribution by salary deduction under the net pay arrangement by December 31 st this year and receive immediate relief from Income Tax on relevant earnings without having to make a Return of Income. Note: 20% Directors of investment companies do not qualify to make retirement saving/pension contributions or to have their companies make contributions on their behalf, even if their income is taxed under Schedule E. 12
14 Dual Income Sources Where an individual has more than one source of income, and where one of those sources is an employment that has an occupational pension scheme to which the individual contributes, special rules apply to the tax relief that can be claimed on pension contributions. As a result, many of those with both self-employed income and income from pensionable employment need advice in relation to the type of pension contributions they should make in order to maximise the tax reliefs available to them. Example 1 John had earnings of 100,000 from employment and also self-employed income of 80,000 in As he was 45 years old in 2012 he is limited to contributing 25% of his earnings to pension arrangements (subject to the aggregate earnings cap of 115,000) for tax relief purposes for that year. He contributed 5% of his employment income (i.e. 5,000) to his employer s occupational pension scheme by way of ordinary contributions in Because John has already made pension contributions in respect of his employment income, in effect, he has used up 100,000 of the aggregate earnings cap. In order to maximise the tax relief available for 2012 he must make a further contribution of 20,000 in respect of his employment income, [i.e. (25% x 100,000) 5,000]. As with any employee in pensionable employment this contribution can be made to a special AVC or special PRSA AVC arrangement before October 31 st 2013 and backdated to 2012 for tax relief purposes (see pages 9 and 10). With regard to his 2012 self-employed earnings if he is making contributions in 2013 for back-dating to 2012 he is limited to a pension contribution of 3,750 [i.e. 25% x ( 115,000 earnings minus 100,000 employment income)] for tax relief purposes. This applies whether or not he makes an AVC payment relating to his pensionable income. As with any self-employed individual this contribution can be made to a Personal Pension or PRSA before October 31 st this year and backdated to 2012 for tax relief purposes. Example 2 Mary had earnings of 130,000 from employment and also self-employed income of 50,000 in As she was 37 years old in 2012 she is limited to contributing 20% of her earnings to pension arrangements (subject to the aggregate earnings cap of 115,000) for tax relief purposes. She contributed 10% of her employment income (i.e. 13,000) to her employer s occupational pension scheme by way of ordinary contributions in Because Mary has already made pension contributions in respect of her employment income, in effect, she has used up the entire aggregate earnings cap of 115,000. Therefore, she is limited to a further contribution of 10,000 in respect of her employment income for tax relief purposes [i.e. (20% x 115,000) minus 13,000]. As with any employee in pensionable employment this contribution can be made to a special AVC or special PRSA AVC arrangement before October 31 st and backdated to 2012 for tax relief purposes (see pages 9 and 10). She is not entitled to tax relief on pension contributions pertaining to her 2012 self-employed earnings, even if she does not make an AVC payment in respect of that year. 13
15 Print Ref: ZURL PB92 0 Zurich Life Assurance plc Zurich House, Frascati Road, Blackrock, Co. Dublin, Ireland. Telephone: Fax: Website: Zurich Life Assurance plc is regulated by the Central Bank of Ireland. Intended for distribution within the Republic of Ireland. The tax and legislative information contained herein is based on Zurich Life s understanding of current practice as at August 2013 and may change in the future.
Chapter 26. Tax Relief for Pension Contributions: Application of Earnings Limit
Chapter 26 Tax Relief for Pension Contributions: Application of Earnings Limit Created June, 2013 Introduction 26.1 Section 790A TCA 1997 provides that an aggregate earnings limit is to apply for the purposes
More informationDefined Contribution Pension Plan. Employee Brochure
Defined Contribution Pension Plan Employee Brochure This brochure describes your Defined Contribution Pension Plan, the aim of which is to help you provide financially for your retirement. This plan is
More informationIT72 Tax treatment of shares acquired by employees and directors under Unapproved Share Option Schemes
IT72 Tax treatment of shares acquired by employees and directors under Unapproved Share Option Schemes RPC004963_EN_WB_L_1 1. Introduction 1.1 Overview This Explanatory Leaflet is aimed at the individual
More informationAn Adviser s Guide to Pensions
An Adviser s Guide to Pensions 1 An Adviser s Guide to Pensions Contents: Section 1: Personal Pensions 1.1 Eligibility 1.2 Maximum Benefits 1.3 Contributions & Tax Relief 1.4 Death Benefits 1.5 Retirement
More informationEagle Star Self-directed Pension
Eagle Star Self-directed Pension Customer Brochure Puts you in control About Zurich Life Zurich Life Assurance plc is a member of Zurich Financial Services group, an insurance-based financial services
More informationGet to know your options when saving for your retirement
Get to know your options when saving for your retirement RetireSmart Guide Allow us to introduce ourselves. We are Zurich. We are part of a global insurance group with Swiss roots. We are one of Ireland
More informationIMO Group Schemes. Protect what matters most. Your guide to group life and disability cover for IMO members
IMO Group Schemes Protect what matters most Your guide to group life and disability cover for IMO members Welcome We can t predict what life has in store when it comes to things like premature death or
More informationHuman Resources. Employee Payroll FAQ
Human Resources RESOURCE DOCUMENT - V1. 2014 PAGE 1 OF 10 FAQ Index 1. What should I do if I am commencing employment in Ireland for the first time? 2. What should I do if I am moving employment? 3. What
More informationYour Guide to Retirement Options
Your Guide to Retirement Options Contents Introduction 3 Overview 4 Personal Pension Plans/PRSAs 5 Defined Contribution Company Pension Plans 8 Additional Voluntary Contributions (AVCs) 11 Retirement Bonds
More informationCHAPTER 21 RETIREMENT ANNUITY CONTRACTS. Revised July, 2013
CHAPTER 21 RETIREMENT ANNUITY CONTRACTS Revised July, 2013 Introduction 21.1 The legislation governing retirement annuity contracts (RACs), often referred to as personal pensions, is contained in Sections
More informationCOMPLETE SOLUTIONS COMPANY PENSION PLAN
PENSIONS INVESTMENTS LIFE INSURANCE COMPLETE SOLUTIONS COMPANY PENSION PLAN APPLICATION DETAILS PLEASE READ THE QUESTIONS CAREFULLY BEFORE ANSWERING THEM AND USE BLOCK CAPITALS. If any item is blank or
More informationUniversal Social Charge. Frequently Asked Questions
Universal Social Charge Frequently Asked Questions 10 July 2015 These FAQs have been updated on 10 July 2015. The changes from the previous version (published on 31 October 2014) are listed hereunder.
More informationStarting in Business
A Revenue Guide A Revenue Guide June 2003 Revenue Mission To serve the community by fairly and efficiently collecting taxes and duties and implementing import and export controls. Contents Page Introduction
More informationPension Annuity. Customer Guide
Pension Annuity Customer Guide Introduction This guide applies to the Zurich Life Pension Annuity. We want to make sure that you purchase a policy that meets exactly with your requirements. This guide
More informationPersonal Retirement Bond
Personal Retirement Bond Customer Guide This Customer Guide is to be read in conjunction with the Fund Guide. Introduction This guide applies to the Personal Retirement Bond. Zurich Life Assurance plc
More informationStarting in Business. A Revenue Guide
A Revenue Guide A Revenue Guide June 2005 Revenue Mission To serve the community by fairly and efficiently collecting taxes and duties and implementing import and export controls. Contents Page Introduction
More informationRetirement Options ESI-Tran Buy-Out Bond Personal Retirement Bond
Retirement Options ESI-Tran Buy-Out Bond Personal Retirement Bond Intermediary Name Financial Advisor Name Intermediary Number By completing and returning this form, you are instructing Zurich Life Assurance
More informationA Guide to Retirement Planning for Company Directors & Executives
A Guide to Retirement Planning for Company Directors & Executives 2012 01.01 Contents 02.01 Pension Planning 03 03.01 Types of Pension provision 04 04.01 Executive Retirement Plan 05 05.01 Tax benefits
More informationGuide to Calculating your Income Tax Liability for 2001 - Additional Notes -
Guide to Calculating your Income Tax Liability for 2001 - Additional Notes - The purpose of these additional notes is to help you compute some of the more difficult calculations that you will need to do
More informationYour Guide to Retirement Options
Your Guide to Retirement Options Contents Introduction 3 Overview 4 Personal Pension Plans/PRSAs 5 Defined Contribution Company Pension Plans 8 Additional Voluntary Contributions (AVCs) 11 Retirement
More informationUniversal Social Charge. Frequently Asked Questions
Universal Social Charge Frequently Asked Questions 23 October 2015 These FAQs have been updated on 23 October 2015. The changes from the previous version (published on 10 July 2015) are listed hereunder.
More informationComplete Solutions Personal Retirement Savings Account
Complete Solutions Personal Retirement Savings Account Customer Application Booklet Please ensure you read all declarations carefully before signing Product Selection Personal Retirement Savings Account
More informationPublic Sector Employees Approaching Retirement
Public Sector Employees Approaching Retirement Sub-Title taking care of you... Planning for retirement Contents Planning for retirement 4 Retirement Lump Sum 5 Additional Pension 6 Sample Illustrations
More informationPension Guaranteed Term Protection - Personal. Customer Guide
Pension Guaranteed Term Protection - Personal Customer Guide Introduction This guide applies to the Zurich Life Pension Guaranteed Term Protection - Personal Plan. Zurich Life Assurance plc ( Zurich Life
More informationPOLICY CONDITIONS Conductor Personal Pension Plan (PC CPPP 06/11)
POLICY CONDITIONS Conductor Personal Pension Plan (PC CPPP 06/11) Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Contract and definitions Contributions The funds Unit linking Benefits General
More informationtes for Guidance Taxes Consolidation Act 1997 Finance Act 2014 Edition - Part 30
Part 30 Occupational Pension Schemes, Retirement Annuities, Purchased Life Annuities and Certain Pensions CHAPTER 1 Occupational pension schemes 770 Interpretation and supplemental (Chapter 1) 771 Meaning
More informationPersonal Pension Account
Personal Pension Account Contents Introduction... 1 A Closer Look At Our Personal Pension Account... 2 What Are The Tax Advantages?... 3 Flexible Contribution Options... 4 You Control Your Investment...
More informationBUDGET AND FINANCE ACT 2011 FREQUENTLY ASKED QUESTIONS
BUDGET AND FINANCE ACT 2011 FREQUENTLY ASKED QUESTIONS Q1) What impact does the Finance & Budget Act 2011 have on my Pension? Answer: The vast majority of individuals with pension schemes will not be affected
More informationTAX BRIEFING. Office of the Chief Inspector of Taxes. ISSUE 19 - No. 3, 1995 INTRODUCTION
TAX BRIEFING ISSUE 19 - No. 3, 1995 Office of the Chief Inspector of Taxes INTRODUCTION This edition of Tax Briefing is devoted exclusively to what can be fairly described as a treatise on the "Taxation
More informationAnnuity PENSIONS INVESTMENTS PROTECTION
Annuity About Canada Life Established in 1903, the Canada Life Group has grown to be a modern and dynamic international financial services business. We are part of Great-West Life, one of the world s leading
More informationA brief guide to the pension provisions of the Family Law Acts
A brief guide to the pension provisions of the Family Law Acts www.pensionsauthority.ie The Pensions Authority Verschoyle House 28/30 Lower Mount Street Dublin 2 Tel: (01) 613 1900 Locall: 1890 65 65 65
More informationGet to know your options for protecting you and your family from risk. Your guide to group life and disability cover for IMO members
Get to know your options for protecting you and your family from risk Your guide to group life and disability cover for IMO members Welcome We can t predict what life has in store when it comes to things
More informationWhat are my Pension Options?
What are my Pension Options? The types of pension plans you can use to save for your retirement www.pensionsboard.ie www.pensionsboard.ie Verschoyle House 28/30 Lower Mount Street Dublin 2 Tel 01 613 1900
More information[05.05.19] Payments on Termination of an Office or Employment or a Change in its Functions
[05.05.19] Payments on Termination of an Office or Employment or a Change in its Functions Contents Sections 123 and 201, and Schedule 3 of the Taxes Consolidation Act, 1997 Updated April 2014 1. Introduction...3
More informationGuidance for employers on stakeholder pensions
Guidance for employers on stakeholder pensions Introduction The 'Welfare Reform and Pensions Act 1999' requires employers to offer their relevant employees access to a stakeholder pension scheme, unless
More information[15.1.14] Income tax relief for insurance against expenses of illness (Medical/Dental Insurance) Sections 470 and 470B TCA 1997
[15.1.14] Income tax relief for insurance against expenses of illness (Medical/Dental Insurance) Sections 470 and 470B TCA 1997 Updated June, 2014 Contents 1. Introduction...2 2. Authorised Insurer...2
More informationGuide to taxation of Married Couples and Civil Partners
RPC007325_EN_WB_L_2 IT 2 Guide to taxation of Married Couples and Civil Partners ver 16.04 myaccount is a single access point for all Revenue s secure services (except ROS) and is the quickest and easiest
More informationUCC Supplementary Life Assurance Scheme Member s Booklet
UCC Supplementary Life Assurance Scheme Member s Booklet Sub-Title taking care of you... Introduction University College Cork (UCC) has established the UCC Supplementary Life Assurance Scheme (the Scheme)
More informationGROUP PERMANENT HEALTH INSURANCE
GROUP PERMANENT HEALTH INSURANCE Claim form Note: Please answer all questions carefully. Failure to provide full information may delay claim consideration. Scheme Name University of Limerick PERSONAL DETAILS
More informationImportant information for AHCPS members nearing retirement
Important information for AHCPS members nearing retirement If you are nearing retirement and your gratuity under the Superannuation Scheme is likely to be less than the maximum allowed under Revenue rules
More informationPension savings tax charges on any excess over the Lifetime Allowance and the Annual Allowance, and on unauthorised payments
Helpsheet 345 Tax year 6 April 2013 to 5 April 2014 Pension savings tax charges on any excess over the Lifetime Allowance and the Annual Allowance, and on unauthorised payments A Contacts Please phone:
More informationCHAPTER 27. Taxation of Retirement Lump Sums. Revised September 2015
CHAPTER 27 Taxation of Retirement Lump Sums Revised September 2015 Introduction 27.1 Section 790AA Taxes Consolidation Act 1997 (TCA 1997) provides a regime for the taxation of the excess portion of retirement
More informationInformation for high earners in USS
Note: The government intends to repeal and replace the taxation changes which will affect high earners from April 2011 however the detail of replacement provisions has not been finalised. The consultation
More informationAnnuities - A Brief Guide
Verschoyle House 28/30 Lower Mount Street Dublin 2 Tel 01 613 1900 Fax 01 631 8602 Email info@pensionsboard.ie www.pensionsboard.ie The Pensions Board has prepared this booklet to help people understand
More informationHuman Resources. Employee Payroll FAQ
Human Resources RESOURCE DOCUMENT - V1. 2014 PAGE 1 OF 9 FAQ Index 1. What should I do if I am commencing employment in Ireland for the first time? 2. What should I do if I am moving employment? 3. What
More informationLump Sum Payments (Redundancy or Retirement)
IT 21 Lump Sum Payments (Redundancy or Retirement) Ver. 14.07 RPC005008_EN_WB_L_1 Introduction In general, all payments made by employers to employees and directors are regarded as Pay for tax purposes
More informationPersonal Retirement Savings Account (PRSA)
Personal Retirement Savings Account (PRSA) Transfer In Application Form Brokerage Please complete sections 1, 2, 3, 4 and 5 in all cases, plus the relevant sections outlined below. Section 1 Contributor
More informationYour guide to the Universities Superannuation Scheme
Your guide to the Universities Superannuation Scheme February 2016 02 Contents The document contains the following sections: Contents 02 About this guide 03 Your USS at a glance 04 Joining the scheme 05
More information2013 No. 2356 PUBLIC SERVICE PENSIONS, ENGLAND AND WALES. The Local Government Pension Scheme Regulations 2013
S T A T U T O R Y I N S T R U M E N T S 2013 No. 2356 PUBLIC SERVICE PENSIONS, ENGLAND AND WALES The Local Government Pension Scheme Regulations 2013 Made - - - - 12th September 2013 Laid before Parliament
More informationPRSI contribution rates and user guide from 1 January 2015. PRSI changes from 1 January 2015 SW 14
SW 14 PRSI changes from 1 January 2015 There were no PRSI changes announced in the October 2014 Budget. PRSI contribution rates and user guide from 1 January 2015 This booklet is intended as a guide only,
More informationIncome Levy. Frequently Asked Questions
Income Levy Frequently Asked Questions 24 September 2010 Changes in the FAQ document published today, 24 September 2010 New FAQ 3.8 What income levy should I include in my preliminary tax for 2010? New
More informationEagle Star Co-Director Insurance
Eagle Star Co-Director Insurance Customer Brochure Best Insurance Provider Investor Magazine 2008 Forms required for: Own Life in Trust (see pages 3 and 4) Co-Director Insurance Application Form Co-Director
More informationStarting a Business The basic requirements for Tax purposes
Starting a Business The basic requirements for Tax purposes RPC004448_EN_WB_L_3 This Guide is intended to describe the subject in general terms. As such, it does not attempt to cover every issue which
More informationWhat is Redundancy? What is the Statutory Redundancy Payment?
What is Redundancy? Redundancy is where an employee s position ceases to exist and the employee is not replaced. An employee aged 16 years or over with 2 years (104 weeks ) continuous service with an employer
More informationCHAPTER 23 APPROVED RETIREMENT FUNDS. Revised July, 2013
CHAPTER 23 APPROVED RETIREMENT FUNDS Revised July, 2013 Introduction 23.1 Flexible options on retirement for pension arrangements were introduced by Finance Act 1999. Rather than purchase an annuity or
More informationRetirement fund contributions
No. 3 of 2016 January 2016 Retirement fund contributions This Legal Update must be read together with Legal Update 3 of 2014, issued on 17 January 2014, with the substitution of the date 1 March 2015 with
More informationPersonal Pensions. Freedom in Retirement Plan Personal & Personal (Rebate) Single Contribution Pension Plan Personal Customer Guide
Personal Pensions Freedom in Retirement Plan Personal & Personal (Rebate) Single Contribution Pension Plan Personal Customer Guide This Customer Guide is to be read in conjunction with the Fund Guide.
More informationPension tax relief Factsheet
Pension tax relief Factsheet This factsheet provides a summary of the rules in relation to pension tax relief, including recently introduced changes and information on proposals for further changes during
More informationHow to complete the Superannuation guarantee charge statement quarterly
USINESS Employers instructions NAT 9600-01.2006 SEGMENT AUDIENCE FORMAT PRODUCT ID How to complete the Superannuation guarantee charge statement quarterly These instructions include: n who must lodge a
More informationpensions investments life insurance Administrator Guide
pensions investments life insurance Personal Retirement Savings Accounts (PRSA) Administrator Guide About us Established in Ireland in 1939, Irish Life is now part of the Great-West Lifeco group of companies,
More informationWith Our PRSA You Can
Live Life Your Way With Our PRSA You Can Making Your Money Work As Hard As You Do Contents Why Should I Plan For My Retirement?... 2 How Will My PRSA Work?... 4 How Will I Benefit From A PRSA?... 6 Investment
More informationGroup Life Insurance Excepted Policy - Policy Booklet
Group Life Insurance Excepted Policy - Policy Booklet Welcome to Aviva Your policy consists of this policy booklet and policy schedule. Please keep them in a safe place along with any revised policy schedules
More informationLimits to tax relief and tax-free benefits
TAX LIMITS FINAL SALARY AND CAREER REVALUED BENEFITS SECTIONS Limits to tax relief and tax-free benefits Introduction Pension benefits earned by individuals in the UK which qualify to receive tax relief
More informationAdditional Voluntary Contribution (AVC) Plan
Public Service Executive Union Additional Voluntary Contribution (AVC) Plan Explanatory Booklet ffgeneral contents Introduction 3 Introduction 4 The Additional Voluntary Contribution Plan 5 What are Additional
More informationApproved Minimum Retirement Fund (AMRF) Approved Retirement Fund (ARF)
Approved Minimum Retirement Fund (AMRF) Approved Retirement Fund (ARF) Customer Guide This Customer Guide should be read in conjunction with the Fund Guide. Introduction This guide applies to the Approved
More informationLimits to tax relief and tax-free benefits
TAX LIMITS FINAL SALARY AND CAREER REVALUED BENEFITS SECTIONS Limits to tax relief and tax-free benefits Introduction Pension benefits accrued by individuals in the UK which qualify to receive tax relief
More informationZurich Life Child s Savings Plus Plan. Customer Brochure
Zurich Life Child s Savings Plus Plan Customer Brochure Why invest for a child? Have you ever considered the money a child may need when they reach the age of 18? A good education is the basis of a good
More informationInformation for Employers
Changes to Medical Insurance Relief for Policies Renewed or Entered into on or after 16 October 2013, and Policies Renewed or Entered into on or after 1 May 2015 Information for s Introduction Finance
More informationContributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund.
Tax and super Issue Date: 1 July 2015 SUP E R ANNUATION The information in this document forms part of the Product Information Booklets for GESB Super and West State Super, each dated 1 July 2015. You
More information1 What is the role of a financial planner when advising a client about retirement planning?
Questions with Guided Answers by Graeme Colley 2013 Reed International Books Australia Pty Limited trading as LexisNexis. Permission to download and make copies for classroom use is granted. Reproducing
More informationAIB Pensions. Saving for your retirement. This product is provided by Irish Life Assurance plc.
AIB Pensions Saving for your retirement This product is provided by Irish Life Assurance plc. AIB has chosen Irish Life, Ireland s leading life and pensions provider, to provide its customers with a range
More informationYOUR RETIREMENT OPTIONS A guide from Irish Life
YOUR RETIREMENT OPTIONS A guide from Irish Life Committed to Plain English There is no financial jargon in this booklet and everything you need to know is written in an upfront and honest way. We are delighted
More informationUNDERSTANDING TAX FOR SMALL BUSINESSES. A Tax Guide for SMEs/Owner-Managed Businesses
UNDERSTANDING TAX FOR SMALL BUSINESSES A Tax Guide for SMEs/Owner-Managed Businesses About the Irish Tax Institute The Irish Tax Institute is the leading representative and educational body for Ireland
More informationSelf Directed Personal Retirement Bond. Personal Retirement Benefits Brochure
Self Directed Personal Retirement Bond Personal Retirement Benefits Brochure Contents Section 1: What is a Personal Retirement Bond? 2 Section 2: Definitions 3 Section 3: Contributions 4 Section 4: Charges
More informationPERSONAL PENSION (TOP UP PLAN) APPLICATION TO INCREASE CONTRIBUTIONS FOR OFFICE USE ONLY. Agency Number
PERSONAL PENSION (TOP UP PLAN) APPLICATION TO INCREASE CONTRIBUTIONS Agency Number FOR OFFICE USE ONLY Arranged by: Application to increase contributions Did your adviser give you advice in respect of
More informationOCCUPATIONAL PENSION SCHEMES AND RETIREMENT ANNUITY CONTRACTS GUIDANCE NOTES
INCOME TAX OFFICE OCCUPATIONAL PENSION SCHEMES AND RETIREMENT ANNUITY CONTRACTS GUIDANCE NOTES This guide is for general guidance only. It must not be treated as a complete and authoritative statement
More information[7.1.32] Rent-A-Room Relief
[7.1.32] Rent-A-Room Relief 1. Introduction Sums arising to an individual in respect of the letting, for residential purposes, of a room or rooms in his/her home, including, for example, sums arising from
More informationWhat are my pension options?
A guide on pension provision and the types of pension plans you can use to save for your retirement www.pensionsauthority.ie The Pensions Authority Verschoyle House 28/30 Lower Mount Street Dublin 2 Tel:
More informationALL ABOUT ANNUITIES JUNE 2015 WHAT ANNUITY PRODUCTS ARE AVAILABLE FROM IRISH LIFE?
PENSIONS INVESTMENTS LIFE INSURANCE ALL ABOUT ANNUITIES JUNE 2015 Irish Life appreciates that you have worked hard to save for your retirement. Deciding what to do with your pension fund is one of the
More informationAll about Annuities. What annuity products are available from Irish Life? What is an annuity?
All about Annuities Irish Life appreciates that you have worked hard to save for your retirement. Deciding what to do with your pension fund is one of the most important decisions you will have to make.
More informationThe Retained Firefighters Pension Settlement Introduction of the new modified pension arrangements
Employee Information Leaflet The Retained Firefighters Pension Settlement Introduction of the new modified pension arrangements APRIL 2014 This information leaflet sets out the pension benefits on offer
More informationPERSONAL RETIREMENT SAVINGS ACCOUNT (PRSA)
PENSIONS INVESTMENTS LIFE INSURANCE PERSONAL RETIREMENT SAVINGS ACCOUNT (PRSA) STANDARD GROUP PRSA POLICY DOCUMENT TERMS AND CONDITIONS ABOUT US Established in Ireland in 1939, Irish Life is now part of
More informationStartup Refunds for Entrepreneurs IT15. Revised March 2015 RPC005957_EN_WB_L_2
IT15 Startup Refunds for Entrepreneurs Revised March 2015 RPC005957_EN_WB_L_2 Contents Introduction and Summary of Scheme 3 General Conditions 3 The Investor (you) 4 The Company 5 Qualifying Trading Activity
More informationUniversity of Limerick Income Continuance Plan
University of Limerick Income Continuance Plan Introduction This explanatory booklet was produced by Willis Risk Services (Ireland) Limited and provides a brief outline only of the main benefits of the
More informationNHS Pension Scheme: Refund of Pension Contributions Factsheet
NHS Pension Scheme: Refund of Pension Contributions Factsheet Qualifying Criteria To qualify for a refund of pension contributions, you must: Have no continuing membership upon reaching normal pension
More informationTrustee training workbook Your one-member Company Pension Scheme with Irish Life
Trustee training workbook Your one-member Company Pension Scheme with Irish Life Committed to Plain English There is no financial jargon in this booklet and everything you need to know is written in an
More informationDEPARTMENTAL INTERPRETATION AND PRACTICE NOTES NO. 23 (REVISED) RECOGNIZED RETIREMENT SCHEMES
Inland Revenue Department Hong Kong DEPARTMENTAL INTERPRETATION AND PRACTICE NOTES NO. 23 (REVISED) RECOGNIZED RETIREMENT SCHEMES These notes are issued for the information of taxpayers and their tax representatives.
More informationThe AIB Personal Pension Protection Plan. Life assurance from AIB to complement your pension plan
The AIB Personal Pension Protection Plan Life assurance from AIB to complement your pension plan Contents AIB Protection Plans 1 The AIB Personal Pension Protection Plan 2 A summary of the benefits 3 The
More informationThe Local Government Pension Scheme
The Local Government Pension Scheme A short guide Dorset County Pension Fund The Scheme The Local Government Pension Scheme (LGPS) is a tax approved, defined benefit occupational pension scheme. The benefits
More informationElite Retirement Account TM
Elite Retirement Account TM Key Features of the Elite Retirement Account The Elite Retirement Account (ERA) is a Self Invested Personal Pension (SIPP). A SIPP is a personal pension that allows you greater
More informationKEY FEATURES OF THE PERSONAL PENSION (TOP UP PLAN) Important information you need to read
KEY FEATURES OF THE PERSONAL PENSION (TOP UP PLAN) Important information you need to read THE FINANCIAL CONDUCT AUTHORITY IS A FINANCIAL SERVICES REGULATOR. IT REQUIRES US, SCOTTISH WIDOWS, TO GIVE YOU
More informationSri Lanka Accounting Standard-LKAS 19. Employee Benefits
Sri Lanka Accounting Standard-LKAS 19 Employee Benefits CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD-LKAS 19 EMPLOYEE BENEFITS OBJECTIVE SCOPE 1 6 DEFINITIONS 7 SHORT-TERM EMPLOYEE BENEFITS 8 23 Recognition
More informationTax Controls and your LGPS Benefits
Tax Controls and your LGPS Benefits In this leaflet we look at the HM Revenue and Customs (HMRC) rules that govern pension savings. Where pension terms are used, they appear in bold italic type. These
More informationPension benefits with a guarantee and the advice requirement
Pension benefits with a guarantee and the advice requirement January 2016 This factsheet is intended to help pension scheme providers determine: whether certain types of pension benefits which contain
More informationAll you need to know about the. Seniors Money Lifetime Loan. Information for you, your family and your advisers
All you need to know about the Seniors Money Lifetime Loan Information for you, your family and your advisers 1 Contents This brochure from Ireland s only specialist Lifetime Mortgage provider highlights
More informationTAX STRATEGY GROUP PENSION TAXATION ISSUES
TSG 13/07 TAX STRATEGY GROUP PENSION TAXATION ISSUES Introduction 1. Last year s TSG paper on pension taxation issues (reference TSG 12/21) set out the various changes made in the incentive regime for
More informationSpread the word. Zurich Life s Protection Offering has just been enhanced. Our commitment is to deliver more for you and your clients with
Spread the word Zurich Life s Protection Offering has just been enhanced. Our commitment is to deliver more for you and your clients with Significantly Lower Premiums New Online Inheritance Tax Planning
More informationPurchase of Notional Service (PNS) and Additional Voluntary Contributions (AVCs)
Purchase of Notional Service (PNS) and Additional Voluntary Contributions (AVCs) Options for public servants www.pensionsauthority.ie The Pensions Authority Verschoyle House 28/30 Lower Mount Street Dublin
More informationFAQS ON INCREASE IN CPF SALARY CEILING AND CPF CONTRIBUTION RATE CHANGES FOR BUDGET 2015
FAQS ON INCREASE IN CPF SALARY CEILING AND CPF CONTRIBUTION RATE CHANGES FOR BUDGET 2015 Why is the Government raising the CPF salary ceiling (i.e. ordinary wage ceiling) to $6,000? The CPF salary ceiling
More informationPensions Information for Scheme Members in the format of Frequently Asked Questions
Pensions Information for Scheme Members in the format of Frequently Asked Questions RPC005769_EN_PR_L_1.indd Feb 2015 Designed & Printed by the Revenue Printing Centre Preface The information in the F.A.Qs
More information