{"id":641,"date":"2025-10-02T14:36:27","date_gmt":"2025-10-02T14:36:27","guid":{"rendered":"https:\/\/gotofinance.ie\/?p=641"},"modified":"2025-10-02T14:37:46","modified_gmt":"2025-10-02T14:37:46","slug":"pension-tax-relief","status":"publish","type":"post","link":"https:\/\/gotofinance.ie\/?p=641","title":{"rendered":"Pension Tax Relief"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\">Why October\/November Is the Time to Act<\/h1>\n\n\n\n<p>Every year around this time, I get the same kind of call.<br>A client rings me in October (usually late October) and says something like:<br><em>\u201cI just found out I can still get tax relief for last year \u2014 can I do anything before the deadline?\u201d<\/em><\/p>\n\n\n\n<p>The answer, of course, is yes. And it\u2019s one of the simplest ways to save money while also saving for your future.<\/p>\n\n\n\n<p>October\/November is the one window where you can <strong>make a pension contribution and backdate the tax relief against your 2024 income<\/strong>. Miss it, and that opportunity is gone for good.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why This Matters<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Immediate benefit:<\/strong> You\u2019re not just saving for retirement, you\u2019re also reducing this year\u2019s tax bill (or even triggering a refund).<\/li>\n\n\n\n<li><strong>Future benefit:<\/strong> You\u2019re moving money from your current account into your long-term wealth and getting the government to boost it along the way.<\/li>\n\n\n\n<li><strong>Peace of mind:<\/strong> Instead of letting another year slip by, you\u2019re actively building towards the retirement lifestyle you want.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How Pension Tax Relief Works<\/h2>\n\n\n\n<p>When you contribute to a pension, the government gives you tax relief at your <strong>marginal rate<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>20% for standard-rate taxpayers<\/strong><\/li>\n\n\n\n<li><strong>40% for higher-rate taxpayers<\/strong><\/li>\n<\/ul>\n\n\n\n<p>So a <strong>\u20ac1,000<\/strong> contribution effectively costs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>\u20ac800<\/strong> at the 20% rate<\/li>\n\n\n\n<li><strong>\u20ac600<\/strong> at the 40% rate<\/li>\n<\/ul>\n\n\n\n<p>You\u2019re essentially moving money from Revenue\u2019s pocket into your retirement plan.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">How Much Can You Contribute?<\/h2>\n\n\n\n<p>Revenue sets limits based on your age, as a percentage of your <strong>earnings (capped at \u20ac115,000)<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Age<\/strong><\/th><th><strong>Max % of Earnings<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Under 30<\/td><td>15%<\/td><\/tr><tr><td>30\u201339<\/td><td>20%<\/td><\/tr><tr><td>40\u201349<\/td><td>25%<\/td><\/tr><tr><td>50\u201354<\/td><td>30%<\/td><\/tr><tr><td>55\u201359<\/td><td>35%<\/td><\/tr><tr><td>60+<\/td><td>40%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">How it works?<\/h2>\n\n\n\n<p>\ud83d\udd39 <strong>Emma (35, earning \u20ac40,000)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contribution limit: <strong>20%<\/strong> = \u20ac8,000<\/li>\n\n\n\n<li>Tax relief: <strong>20%<\/strong> = \u20ac1,600<\/li>\n\n\n\n<li>Net cost = \u20ac6,400 while \u20ac8,000 goes into her pension.<\/li>\n<\/ul>\n\n\n\n<p>\ud83d\udd39 <strong>Mark (42, earning \u20ac120,000)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contribution limit: <strong>25%<\/strong> of \u20ac115,000 (cap) = \u20ac28,750<\/li>\n\n\n\n<li>Tax relief: <strong>40%<\/strong> = \u20ac11,500<\/li>\n\n\n\n<li>Net cost = \u20ac17,250 while \u20ac28,750 goes into his pension.<\/li>\n<\/ul>\n\n\n\n<p>For both Emma and Mark, the tax system is designed to reward them for saving but only if they act before the deadline.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Claim Relief (Step by Step)<\/h2>\n\n\n\n<p>Making the contribution is half the job \u2014 you also need to claim the tax relief. Here\u2019s how:<\/p>\n\n\n\n<p><strong>Step 1.<\/strong> Log in to <a href=\"https:\/\/www.revenue.ie\" target=\"_blank\" rel=\"noopener\">Revenue.ie<\/a> \u2192 <strong>MyAccount<\/strong>.<\/p>\n\n\n\n<p><strong>Step 2.<\/strong> Under <strong>PAYE Services<\/strong>, click <strong>Review your tax for the previous 4 years<\/strong>.<br><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"908\" height=\"1024\" src=\"https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image-908x1024.png\" alt=\"\" class=\"wp-image-642\" srcset=\"https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image-908x1024.png 908w, https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image-266x300.png 266w, https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image-768x867.png 768w, https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image.png 920w\" sizes=\"(max-width: 908px) 100vw, 908px\" \/><\/figure>\n\n\n\n<p><strong>Step 3.<\/strong> Select the relevant year (usually the previous year).<\/p>\n\n\n\n<p><strong>Step 4.<\/strong> Under the <strong>\u201cYour Job\u201d<\/strong> section, choose the correct option:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Additional Voluntary Contributions (AVCs)<\/li>\n\n\n\n<li>PRSA contributions<\/li>\n\n\n\n<li>Retirement Annuity Relief (personal pension)<\/li>\n<\/ul>\n\n\n\n<p>You\u2019ll be asked for contribution details and to upload supporting documentation (your provider\/advisor can supply this).<br><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"940\" height=\"520\" src=\"https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image-1.png\" alt=\"\" class=\"wp-image-643\" srcset=\"https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image-1.png 940w, https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image-1-300x166.png 300w, https:\/\/gotofinance.ie\/wp-content\/uploads\/2025\/10\/image-1-768x425.png 768w\" sizes=\"(max-width: 940px) 100vw, 940px\" \/><\/figure>\n\n\n\n<p><strong>Step 5.<\/strong> Review and submit. \ud83c\udf89<br>You\u2019ve just reduced your tax bill and maybe unlocked a refund.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">My Take<\/h2>\n\n\n\n<p>I\u2019ve seen the difference these October\/November contributions can make. For some, it\u2019s a welcome refund landing just before Christmas. For others, it\u2019s knowing they\u2019ve finally taken control of their retirement planning.<\/p>\n\n\n\n<p>The key is: <strong>don\u2019t leave it too late.<\/strong> Once the deadline passes, you can\u2019t go back and claim for 2024.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Bottom Line<\/h2>\n\n\n\n<p>If you\u2019ve got money sitting in your bank account, ask yourself:<\/p>\n\n\n\n<p>\ud83d\udc49 Would you rather leave it there earning next to nothing or move it into your pension, grow your future wealth, and get 20\u201340% of it straight back through tax relief?<\/p>\n\n\n\n<p>This deadline comes once a year. Don\u2019t miss it.<\/p>\n\n\n\n<p>\ud83d\udccc If you\u2019re not sure how much you can contribute or how to claim the relief, I\u2019ll help you run the numbers and walk you through the Revenue process. Book a quick call and we\u2019ll get it sorted before the cut-off.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why October\/November Is the Time to Act Every year around this time, I get the same kind of call.A client rings me in October (usually late October) and says something like:\u201cI just found out I can still get tax relief for last year \u2014 can I do anything before the deadline?\u201d The answer, of course, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pensions"],"_links":{"self":[{"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/posts\/641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=641"}],"version-history":[{"count":1,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/posts\/641\/revisions"}],"predecessor-version":[{"id":645,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/posts\/641\/revisions\/645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=\/wp\/v2\/media\/644"}],"wp:attachment":[{"href":"https:\/\/gotofinance.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gotofinance.ie\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}