Max AVC contribution: what is gross salary, does it include Notional Pay/BIK ?

[Beamie]

Hi,

I want to top up my AVC for 2022 to the max allowed for tax relief. My salary is well below 115k limit.
I know the limit for my age (61) is 40% of my gross salary including both my 5% employee contribution to company DC pension and my AVCs.

My payslip for December 2022 shows (YTD values):

Gross Pay = 84355.99
Notional Pay / BIK = 2462.21
DC Pension = 4091.64
AVC = 24,900

I expected my total "DC Pension" contribution to be 5% of my gross pay but instead it is 5% of my salary - not including occasional extra pay for e.g. out of hours work.

So I expect that my max AVCs for 2022 is:

Max pension for tax relief = Gross Pay 84355.99 @ 40% = 33,742.40
Less already contributed pension + AVC = 28,991.64
Max AVC top-up for tax relief = 4,750.76

Or can I add Notional Pay to Gross Pay above?

Also, I think I can pay any additional AVC to the company pension fund and then claim tax relief by updating my tax return for 2022.

Thanks for any corrections, etc.

 

[ClubMan]

Any use?

Does BIK Increase the maximum amount of Pension/AVC contributions

I have researched this, but can't seem to find a definitive answer. I am well aware of the age related limits for Pension/AVC contributions, but the question here is, does a BIK increase the amount that you can put in. I know a guy who processes Payroll, and they say it does increase the amount...

www.askaboutmoney.com

 

[S class]

Yes you can add the extra pay in for the AVC calculation.
Provided you make your top up contribution before 31/10/2023 you can claim tax relief for 2022.

 

[Towger]

Revenue's definition of Gross Pay includes BIK and is not reduced by Salary Sacrifices.

 

[Beamie]

Great, thanks for the replies. Sorry I didn't spot the existing thread.