Last Chance for Employers and Directors
If you are an employee or company director who pays taxes through the PAYE system you currently have one last chance to back-date relief from PRSI and Health Levy on certain pension contributions. But, you are quickly running out of time. Everything has to be in place by October 31st 2011. If you file and pay your tax return through the Revenue online system (ROS) you have a little longer – up until November 15th. Up to December 31st 2010 relief against Income Tax, PRSI and Health Levy was allowed on qualifying personal contributions to pension plans. Since January 1st of this year relief is no longer available against PRSI. Nor is it available against the new Universal Social Charge (USC) which replaced the Health Levy and the Income Levy. However, Revenue practice allows for the back-dating to 2010 of relief against Income Tax, PRSI and Health Levy to be claimed on certain personal contributions made and notified to the Revenue before October 31st 2011. Therefore, for example, individuals who paid Income Tax at 41%, PRSI at 4% and Health Levy at 4% in 2010 could claim back €490 for every €1,000 of qualifying contributions they make before October 31st.
This really is an opportunity not to be missed.
Contact Growth Investments for more information.
Email: richard.cotter@growthinv.ie