To the members of NationalUniversity of Ireland, Galway Pension Scheme(s).
Very important notice to those who are considering retiring in the near future.
Are you aware of the possibility of reducing the amount of Income tax that you have already paid to Revenue in the Tax Year 2011( 1/1/2011-31/12/2011).
In other words, getting back some of the income tax that you have already paid in 2011, back into your own bank account. Yes, it is still possible to organise a tax rebate cheque from Revenue,- but this mustbe done before 31st October 2012.
You may wish to potentially reduce your 2011 income tax liability by paying a single premium AVC to your NUI Galway Pension and making a backdated claim for tax relief before 31st October 2012. NOTE:-the single premium AVC payment must be received by Noel Hackett, Qualified Financial Advisor, of New Ireland Assurance(your AVC administrators) by the 31st. October 2012 in order to qualify to submit a backdated tax rebate claim for tax relief purposes.
The maximum amount that may be paid as a backdated single premium AVC is a % of remuneration, and your current rate of contribution to NUI Galway pension and depends on the employee's age at 31st December 2011 e.g. if you attained age 30 by the 31st. December 2011 then you may pay up to 20% of your 2010 remuneration as a single premium AVC.
Under 3015%
30-39 20%
40-49 25%
50-54 30%
55-59 35%
60 and over40%
This chart represents the maximum contribution on which you may receive a 2011 tax credit.
Alternatively, you can start paying regular monthly contributions to your AVC fund through Payroll deductions, in order to claim your income tax relief . Regular AVC contributions are also be paid directly from your salary and the "net pay" tax system will operate so that you will obtain your tax relief at source.
This is an opportunity to reduce the levels of income tax that you pay while also providing you with enhanced benefits at your retirement date.
For those who already have an AVC facility in place, it is possible to make a single contribution to it and back date for tax year 2011. Or you may wish to review your contributions each month to reflect increases in your salary, changed circumstances etc.
How it works!
If you pay income tax at the marginal rate (top rate @41%), and if you decide to invest , for example €1,000 into an Additional Voluntary Contribution Fund( AVC Fund) then you will be issued with a letter, Revenue Approval Certificate from Noel Hackett of New Ireland Assurance Galway. This document will be furnished by you at your local tax office with a request that Revenue organise a tax rebate cheque to you for an amount of €410.00.
For those who opt to make regular monthly contributions in the Scheme, then in effect you will be attracting relief of up to €410.00 for every €1000 invested. This relief/tax saving is given to you at source through your salary each month.
You will need to claim the tax relief directly from the Revenue by submitting an appropriate return to your local PAYE tax office or online at (if you are registered for the Revenue's on-line services -ROS).
I can be contacted on the numbers below should you require further details or should you wish to avail of these tax breaks opportunities.
Kind regards,
NOEL HACKETT
(QFA, MLIA, MIB, Dip Investments)
Qualified Financial Advisor, Senior Pensions and Investments Consultant
New Ireland Assurance, 22 Eyre Square,Galway. Office 091-563023, Mobile 086-8186163