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.
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.