Individuals who are self-employed and individuals who are in non-pensionable employment may make contributions to a retirement annuity plan.

The amount of contribution that may be paid is subject to certain limits. Individuals may claim relief on premiums on the lessor of their net relevant earnings and an earnings cap of €253,947.

The allowable contributions as a percentage of net relevant earnings or the cap if applicable are as follows:

Age during the tax year
Maximum relief

Less than 30 15%

30 but less than 40 20%

40 but less than 50 25%

50 and over 30%

Generally, tax relief will be given in the tax year the contribution is paid. However, contributions paid between the end of the tax year and the return filing date (i.e. between 6 April and the following 31 January) may be treated as paid in the tax year.

OSK Contracting provide quality and professional business advice to indigenous Irish businesses. Our clients include government bodies; multi-national groups; PLCs; SMEs and sole traders but we specialise in progressive indigenous Irish family owned businesses.

Reprinted with kind permission by OSK Contracting www.osk.ie

Phone: 01 439 4200 East Point Plaza East Point Dublin 3

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