An issue that affects doctors with regard to tax relief on pension contributions is the issue of those with more than one source of income covered by “Tax Briefing 74” (published by the Revenue on September 7th 2009) and “Tax Briefing Issue 11 - 2010” (published by the Revenue on September 7th 2010). The effect of these is that many doctors who are contributing to the HSE or the GMS Superannuation Schemes, may not actually be entitled to tax relief on all of the Personal Pension / PRSA contributions they are currently making in respect of their self-employment income. Making Additional Voluntary Contributions (AVCs) or Standalone PRSA AVCs in respect of their pensionable income may now be the only option open to them to optimise pension tax relief.
Standalone PRSA AVCs are a very attractive option in that they offer full transparency on charges, flexibility on contribution amounts and choice of investment funds. The tax relief on lump sum amounts paid to Standalone PRSA AVCs before October 31st 2011 can be backdated to 2010. Relief from PRSI and the Health Contribution is no longer available.