Max AVC allowed if I join DC pension in Dec 23

[Springers]

Hi,

I'm 42 and just started a new position with a salary of 52k but will only be eligible to join the scheme after the probation period (6 months).

Employees are required to contribute 5% to get 5% from employer.

I will be eligible from 1st December 23. I have 2 questions:

1- Can I put 20% AVC ( maximum based on my age) of my gross earnings at the end of the year despite the fact the contribution will start in December? Or is the AVC tax relief pro rata?​

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2- I have not maximized my AVC for my previous job in 2023. Can I put 20% AVC of my yearly gross earning? or it is only limited to the gross earning of the current position?​

 

[fayf]

I was in the same situation some years back. In this case, i was allowed make AVC’s until the 6 months had elapsed, but, scheme rules can differ.

Yes, is the answer to question 1), allthough if there is not enough pay in your December payslip, which might well be the case, you can make a payment to the provider, post December, and make a tax claim next year, and recoup the 40 % tax relief next year, there is a deadline of October 31st 2024 to make an AVC tax claim in relation to 2023 tax year.

2. It is restricted to the current employment earnings, eg 20% of the Gross Taxable income for employment of your new employment.

 

[Springers]

Thanks for the quick reply!