AVC contributions while changing jobs

Kandarra

Registered User
Messages
5
Hello,
I am currently a member of my employer DC scheme. I contribute 6% they contribute 9%. I make a lump sum AVC each October up to my 20% threshold to the scheme from rental income to reduce the tax bill for the previous year. If I change job to a new employer who also has an occupational DC scheme, can they take an AVC contribution for the previous tax year into their scheme or should I make the AVC into my existing employer scheme before leaving?
Thanks
 
As a follow up to the above I made the AVC for 2020 before leaving my old employment and all was ok.

I am looking at my AVC option for 2021 into my new employers scheme and am trying to work out the maximum AVC possible. I am in the 30-39 bracket so the max is 20% of my earnings.

My new employers scheme I pay pension contribution 7% of my salary they match 7% . salary €60k
My new employer provides a €10k car allowance which is taxed as normal income, not included in pension contribution.

for last year my Gross pay (as per ROS) was:
Old employment: €13750
New employment: €45000 salary +€7500 car allowance
Pension contribution old employment 5% = 687.50 (for 3 months)
Pension contribution new employment 7% = €3150 (for 9 months)

Is the AVC scope
A
20 % of (13750+45000)=€11750
11750-687.5-3150=€7912.50 AVC

or
B
20 % of (13750+45000+7500)=€13250
13250-687.5-3150=€9412.50 AVC

or something else?

Thanks
 
Since BIK is taxable as income, you can add that to your salary for calculating the max pension contributions. So B is correct.
 
I’m confused regarding your timeline(s).

To dumb it down for my benefit, if the AVC is in respect of income from a job that you’ve left, the contribution needs to go into a PRSA, which could then be collapsed into the new employer’s scheme.

e.g.

- I work for X and leave on 31 December 2021

- Every October I make an AVC to reduce my tax bill

- The October 2022 one is against 2021 income

- But I’ve left that employment, so it need to go into a PRSA; my new employment with Y is irrelevant