Pensions Hub-Reduce your 2020 tax bill

Bruen Financial Services - Bruen - Pensions Hub-Reduce your 2020 tax bill

So you have been given your 2020 tax bill……..

If you are self employed or an employee who has a tax bill to finalise before the end of October, pension funding is the most straightforward way to reduce that bill and at the same time start the process of setting you up in retirement for the lifestyle you want to live. We make the process simple and use straightforward language to give you a clearer picture of the tax savings and also what starting your pension will mean to you when you do retire.

For Employees

If you are an employee who feels you are paying too much tax, the good news is that you may be entitled to a refund of some of the Income Tax you paid in 2020. This can be achieved by personally making a lump sum personal pension plan or PRSA contribution by 31 October 2021 and electing to backdate the tax relief to 2020, subject to the age-related limits.

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For the Self-Employed

If you are self-employed you must calculate your tax liability and make a payment by 31 October 2021 in respect of your: 1. Final Tax Assessment for 2020; 2. Preliminary Tax for 2021.

The good news… You can reduce your 2020 Final Tax liability and your 2021 Preliminary Tax liability by making contributions to a Personal Pension plan or to a PRSA plan by 31 October 2021 (or 12 November 2021 for ROS users) and also by these respective dates electing to backdate the tax relief to 2020

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