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How to get a rebate or reduce your 2018 tax bill

There’s only a short time left before the deadline to reduce the tax you owe or to seek a rebate on taxes from 2018.

Making a lump sum pension contribution is a great way to rapidly increase your pension provision and secure your financial future, cutting your tax bill at the same time.

And now is a great time to top up your pension and claim income tax relief of up to 40% on your 2018 earnings.

In plain English, that means that for every €10,000 you put in, you can claim a reduction in your tax bill of up to €4,000.

A decent Financial Broker will help you determine your lump sum contribution eligibility.

When do I have to contribute?

The tax deadline to make contributions against 2018 earnings is approaching fast, so it’s best to act now. There are two separate deadlines depending on whether you handle your taxes with a paper return, or online.

The deadlines for both are:

31st October 2019 – If you plan to file a paper tax return
12th November 2019 – If you pay and file your tax returns online through ROS

Who can avail of this?

Almost anyone! Both employees and self-employed people can make a lump sum top-up to their pensions. It doesn’t matter if you have an existing pension or not.

If you paid income tax in 2018 from carrying on a trade, profession, or employment, then a pension contribution is possible.

How much can I put in?

The amount by which you can top up your pension depends on your age, as well as what you have contributed already for 2018 (for example, through your company scheme).

Depending on your age, you can put a certain percentage of your earnings into your pension. To see what the limits are for your current age, consult the table below.

Joe Bruenhttp://bruenfs.ie
Joe is the owner of Bruen Financial Services, an award-winning Galway financial brokerage
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