Money Talks: How to turn an unexpected tax bill into a nest egg for your retirement 

Our reader is in a cold sweat with news that she has a tax liability of €5000 for last year. The good news is that she can offset the bill against a pension plan

Eliminate tax liability by contributing to a revenue-approved pension scheme.

I am a 43-year-old self-employed beauty therapist and I have been informed by my accountant that I have a tax liability of €5,000 for the 2020 tax year which came as a shock. He advised me to speak with a financial advisor regarding how I might be able to reduce or eliminate this liability by investing in a pension scheme. I have never had a pension before and would like to know how I should go about this?

I understand only too well that ‘cold sweat’ feeling you get when a phone call arrives from your accountant after they have totted up the figures at the end of the trading year. The good news is that he is correct, you now have the option to either reduce or possibly eliminate this tax liability in full by contributing to a revenue approved Pension Scheme.