Income tax relief is still available on contributions made personally to a pension, 40% of the contribution for a top rate tax payer,
or 20% for a standard rate tax payer. For a higher rate tax payer, this is equivalent to the government topping up your net pension
contribution by up to 67%!
Life Cover With Tax Relief
Life cover with tax relief (also know as Personal Pension Term Insurance) is a policy that has been approved under Section 785 of the
Taxes Consolidation Act, 1997. Essentially it is life cover on which the premium qualifies for tax relief at the life insured’s marginal
rate of income tax, subject to certain limits.
Sole Traders pay PRSI at the class S rate. This mean you have little / no social protection, invalidity or disability. Income protection
is an insurance policy that gives you a replacement income if you can’t work because of accident, illness or injury. Income protection
can replace up to 75% of your normal income which lets you cover your regular expenses and protect your family’s lifestyle.
Premiums are eligible for tax relief at your marginal rate.