Blog, David McCarthy, Galway Talks – 14/11/2013

galway-bayfmQuestion:  I am in my mid thirties and have no pension.  Despite the bad publicity pension plans have received in recent years, do you think it is a good idea to think of starting?

Answer:  It is important for everybody to have a pension, because unfortunately we are not going to be able to work forever.  Pension contributions are the only area where substantial tax relief is still available. 

Regarding the type of pension that may suit your circumstances, this is quite a complex area and I would recommend that you get advice.

Issue:  Property Tax payment system “DEBACLE” continues.

Comment:  Once again the Property Tax payment system is causing confusion and concern.  To put it simply, I would not recommend that you pay by debit/credit card or cheque/cash, as the payment will need to be made immediately.  If you pay by Direct Debit on a once off basis the payment, this will go through next March or if you pay by monthly direct debit it will commence in January. 

As if matters have not been confusing enough with the whole Property Tax issue it now appears that circa 5,000 have made payments this year that were exempt.  This relates to a clause in the legislation which exempts buyers of second hand properties from 2013 onwards, where the house is their sole family home, therefore have no liability up to 2016.