Irish Entrepreneurs lose out on the biggest tax relief scheme

- Over half are not taking advantage of the tax relief on pensions

In a new study issued today, Monday 10th September, by Bank of Ireland Life, it was revealed that more than half of Irish entrepreneurs do not have a pension, representing both the self-employed and business owner communities.

Highlights of the study include:

Commenting on the research findings, Brian Sullivan, Head of Pensions, Bank of Ireland Life said; "Ireland is a thriving country of entrepreneurs, however we are finding that few are taking advantage of one of the best tax relief schemes available. The extent of pension tax relief available to self-employed people and business owners is significant, in many cases it is more tax efficient for business owners to put a portion of their company profits into a pension instead of a pay rise. What is interesting is that of those self-employed entrepreneurs who don't have a pension, 33% paid into an SSIA proving that the capacity to put save for the future is there. A pension can offer almost double the SSIA bonus through tax relief for a self-employed person, while the tax relief incentives for business owners are even greater again."

Additional findings revealed that:

"The best advice I can offer the business start-up community is to start paying into a pension as soon as you are generating a profit. Every business-owner has to pay tax, whether you are self-employed or a limited company. Paying into a pension will reduce your annual tax liability, which makes good business sense.

There are many business pressures in the early years such as finding premises, purchasing equipment, building a client base and more, but starting a pension early with small contributions and gradually building these up, can make a huge difference to the size of your pension fund in the long run. With most Irish Entrepreneurs working significantly longer hours than the average person, many hope to retire early and so must ensure they have a decent pension in place," Brian Sullivan said.

ENDS

For further information contact:

Laura Erskine
Public Relations Manager
Bank of Ireland Life
Tel:01 6172586
Mob:086 8562929

Audra Dutton
Group Consumer Communications Manager
Bank of Ireland
Tel:01 604 3750
Mob:086 818 3932

New Ireland Assurance Company plc trading as Bank of Ireland Life is regulated by the Financial Regulator and is a member of the Bank of Ireland Group.