Which figure on my P60 should I use to determine my maximum allowed AVC contribution

[JMG]

Hello everyone.

I am a PAYE employee, and all of my income is PAYE. I am a member of my employer’s defined benefit pension scheme. I also contribute to an AVC fund. My AVC contributions are taken from payroll every month, a fixed amount each month. The amount contributed each month is decided by me at the start of the year. For 2013 tax year I did not contribute the max AVC amount that I am allowed within revenue limits (in my case 25% of earnings), because at the time I didn’t have the money to do so.

I now have some spare cash and I would like to invest in it to top up my 2013 AVC. But when I look at my P60 for 2013 I am unsure what value to use as my earnings for 2013. There are two figures:

1. In section A, list item 3 of the P60, there is a figure with the explanatory text: “Pay in respect of this period of employment (i.e. gross pay less any superannuation …etc.)
2. In section D, list item 3 of the P60, there is a figure with the explanatory text: “Pay for USC purposes in respect of this period of employment.”

The second figure is larger than the first. But which of the two should I use when calculating 25% of my earnings in order to stay within the revenue limits for tax relief purposes?

Thanks for any help offered. The deadline for getting this into revenue is this Friday (31st Oct) so I need to move quickly on this.

jmg

 

[Steven Barrett]

take the bigger figure, work out the max and then deduct the contributions already paid in that period.

Steven
www.bluewaterfp.ie

 

[JMG]

Thanks very much Steven, I appreciate the quick reply.

jmg

 

[DOCKC]

Hi

On a related issue im a PAYE working but make a tax return annually via ros as ive some CGT income etc.

I pay pension contributions through my salary but would like to reduce my tax bill by paying an AVC - is the deadline for paying the AVC extended to 13th Nov similar to the ROS deadline - so that it can be used against 2013 Income?

I will work based on Steven's advise above - take the big figure work out the max and then deduct the amount that i have already paid via salary.

Thanks for your help on the deadline question for AVC

 

[Homer]

Yes, the deadline for paying a back-dated contribution is extended to the ROS deadline. Please note that in order to claim back-dated relief, the contribution must have been paid by the deadline and the tax relief must also have been claimed by that date.