The Revenue Commissioners have recently extended the deadline for people in excess of current pension savings to notify them. It has become a standard practise in the current financial climate for the amount of pension funds an individual can accrue while availing of tax relief to be reduced.
Those above the new threshold can notify Revenue and receive a new personal fund threshold, reflecting the size their pension fund was on the date the lower limit was announced. This is to ensure that these individuals do not face a further tax bill.
In January 2014, the threshold fell from €2.3 million to €2 million, those with savings between these figures were given until July 2nd, 2015 to notify Revenue. Despite the deadline, it is thought that many people have not been in touch with Revenue and as such the deadline has now been extended to July 31st 2015.
If you have pension savings between €2million and €2.3 million you are encouraged to notify Revenue ASAP in order to avoid any further taxation on these amounts. It is unlikely that further extensions will be granted.
The deadline for staff in the public service to retire if their pensions are to be calculated on the higher salaries has also been extended in recent months. The new deadline will be July 2016. Minister for Public Expenditure and Reform, Brendan Howlin has said that the new deadline is intended “To minimise impacts on schools in particular.”
It is hoped that this extension will reduce the number of key managerial senior staff retiring en masse, which could lead to significant financial strain on schools in particular.
The Department has said that under the Haddington Road agreement, public service pay rates were reduced by 5.5% or more. “Retiring within the extension period will allow an affected public servant to benefit from superannuation calculated at the pre-cut pay level.”
If you are unsure about how these changes may affect you or you require any assistance with your own financial matters, please don’t hesitate to contact us here at DCA Accountants.