Question:

I make a contribution to my employer's occupational pension scheme each year of 5% of my salary. I have heard recently that if I make an additional contribution in 2015, outside of payroll, that I can elect to have it offset against my 2014 income for tax relief purposes. Is this correct?

Answer:

Yes, subject to the condition that the contribution is made before the income tax self-assessment deadline (31st October or 12th November where the income tax return is paid and filed on ROS) and subject to the age related tax deductible contribution limits that applied in 2014.

For example, if an individual made a contribution to a pension scheme in October 2015, he can elect to claim tax relief on this contribution for 2014, even though the contribution was made after the end of that tax year. The individual can claim tax relief by submitting a Form 11 or Form 12 to Revenue, or via PAYE Anytime as appropriate.

This applies to contributions to any type of pension arrangement (Occupational Pension Scheme, Personal Retirement Savings Account or Retirement Annuity Contract).