Reduce Your Tax Bill Today and Save For Tomorrow
Rob O’Neill
Senior Financial Advisor at MC Financial
The days are getting shorter and Halloween costumes are starting to appear in the shops, you don’t want to admit it, but it’s that time of year again! If you are self-employed, you should be aware that the paper deadline for the 2014 tax year is 31st October 2014 and online returns are due on 13th November 2014. What you might not know, is that there is a simple way to reduce your tax bill that also allows you save for retirement.
Many individuals who are required to file a self-assessment tax return can make an annual single pension contribution in 2014 and then offset the tax relief against 2013 earnings. This contribution must be made before the pay and file deadline to ensure that the savings you make go against this year’s tax bill.
How much can I contribute to my pension?
| Tax Relief by Age Bracket | |||||
| Under 30: | 30 to 39: | 40 to 49: | 50 to 54: | 55 to 59: | 60 and over: |
| 15% | 20% | 25% | 30% | 35% | 40% |
The maximum pension contributions for which you can claim tax relief depends on your age, for example, if you are 32, you can receive tax relief for 20% of your earnings, while someone in their 60s, approaching retirement can receive tax relief for 40% of their earnings.
To find out more about how you can reduce a hefty tax bill and put away some money for your retirement, talk to Rob, our pensions expert today by calling 01 822 8022 or by emailing rob@mcfinancial.ie.
To learn more about how pensions can help you save for retirement and reduce your tax bill, check out the MC Financial comprehensive pension page.
Like the MC Financial Facebook page today!
