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Peavoy Financial Planning: Increase your family balance sheet

For those of you who are registered to use the Revenue On-line Service (ROS), the extended Pay and File deadline for on-line tax returns is, Thursday, December 10.

This extension was granted by Revenue, in recognition of the challenges being experienced by businesses and tax practitioners, arising from the COVID-19 crisis.

If you qualify for this extended Pay and File deadline, the deadline for making a Pension Payment and claiming tax relief against your 2019 income is also extended, to Thursday, December 10. Tax relief is available on your Pension Payments at your Marginal Rate in 2019 (ie: 40% or 20%).

To demonstrate how this operates, the following are two easy to follow examples

Example Employee

Paul is 35, and employee in a pharmaceutical company and earns €50,000 per year. He is registered for ROS.

He is a member of an occupational pension scheme and made €2,500 (i.e. 5%) worth of employee contributions in 2019.

As Paul was 34 in 2019, he can make an additional €7,500 AVC pension contribution before the December 10 deadline and backdate it against his 2019 income. Assuming 40% Tax relief, Paul will reduce his final 2019 Income Tax Bill by €3,000, which he will get, as cash back from the revenue.

Example Self Employed

Michael is 41, and is a Self Employed plumber. He earns €50,000 per year. His accountant files his returns through ROS.

He made no contribution to a pension in 2019. As Michael was 40 in 2019, he can make a personal contribution of €12,500 to a pension before the 10th December 2020 and backdate it against his 2019 income.

Assuming 40% Tax relief he will reduce his final 2019 Income Tax Bill by €5,000. This will also reduce his Preliminary Income Tax Bill for 2020 by €5,000.


At Peavoy Financial Planning we have over 22 years experience working with Self Employed, Employees and Company Director’s, helping them put understandable tax efficient plan’s in place for retirement.

By paying into a pension you keep more money on the family balance sheet, than giving it to the taxman.

If you would like us to review your current situation, do get in contact with me me here at Peavoy Financial Planning and we will work through a targeted plan with you.  I can be contacted on 087-2902206 or alternatively by email on david@peavoyfinancial.ie 

David Peavoy BA, QFA, LIAP is the Owner of Peavoy Financial Planning whose practice is based in Office 5b, Portlaoise Enterprise Centre, Clonminam Business Park, Portlaoise, Co Laois.

David Peavoy T/A Peavoy Financial Planning is regulated by the Central Bank of Ireland

Disclaimer: All data and information provided within this blog is for information purposes only. It should not be taken as specific advice for your situation. Peavoy Financial Planning makes no representations as to the accuracy. completeness, or suitability of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its use.

SEE ALSO – Check out the Peavoy Financial website here

SEE ALSO – Check out a series of Peavoy Financial Planning columns here

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At Peavoy Financial Planning we consolidate all of your family assets into one balanced program, so that you can improve your asset accumulation in less time with fewer risks along the way. You can contact me on 087-2902206 or alternatively drop me an email on david@peavoyfinancial.ie