Overpaying AVC's, some not covered by Tax Relief

Froggy123

Company I work for has a pension scheme in place for which they first make a contribution on our behalf of 6% salary and then allow us to make additional contributions (AVC's) up to 9%, for which they match.

I'm thirty now, but only just realised that as I have been making a AVC of 6%, this puts the total pension contribution of 18%, which is 3% over the Tax relief limit for someone in their twenties (Tax relief limit is 15%).

I'm currently looking into submitting tax returns to get money back on medical expenses and wondering if I should be looking to make this right, or I'm not 100% if I need to do anything with respect to the tax on the additional contributions.

Question on how this works:
1. Tax relief seems to be applied at source by employer, is onus on employer to do the calculations so I pay tax on the 3% as part of monthly salary i.e. for them not to grant me tax relief?
2. When filing a tax return should I be declaring this 3% (in some way) as needing tax to be paid on? Or will this automatically get calculated by Revenue, in that they'll recognise that in 2017 I claimed tax relief on pensions of 18% and not the allowed 15% and they will subtract what is owed from the claims for medical receipts?

Thefact

The 15% tax relief applies only to your contributions.

Froggy123

I thought employer contributions were deemed for tax relief purposes to be made by employee...see below blurb from revenue site. Is PRSA considered the same as a pension plan?

https://www.revenue.ie/en/jobs-and-pensions/pensions/tax-relief-for-pension-contributions.aspx

'PRSAs
Employer PRSA contributions are:

-deemed for tax relief purposes to be made by the employee
-added to the employee's actual contributions to determine if the above limits are reached
-treated as a taxable employer benefit received by the employee.'

Thefact

Your company has a pension scheme which is different from a PRSA. The link below has more info.

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/pensions/personal_retirement_savings_accounts.html

Froggy123

Thefact wrote: »

Your company has a pension scheme which is different from a PRSA. The link below has more info.

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/pensions/personal_retirement_savings_accounts.html

Thanks for that! The link makes sense