As previously covered in eNews, Revenue issued an article from Tax Briefing 74 dealing with tax relief for pension contributions and the application of the earnings limit. Example 2 of the article outlines the maximum tax relief available where an individual has employment earnings which exceeds the earnings limit and self employment income and is obliged to contribute to an occupational pension scheme.
Queries have been raised by members on the utilisation of earnings limit and the order of contributions as illustrated by Example 2. Following our research, it is not immediate clear that the sequence of tax relievable contributions as outlined in Example 2 is provided for in the legislation. We are continuing to correspond with Revenue on this matter.
The full article is available here