SCSB Calculation and Top Slicing Relief.

[Qwerty]

Hi all,

Can someone clear up a few queries I have;

In the calculation of SCSB, the ‘A’ in the formula is the ‘12 month average of the remuneration for the last 3 years of service’.

This includes Basic pay, but does it also include bonus plus shift pay plus VHI contribution by employer (as they all goes through pay-role, and appears on my payslip)?

Also I was told that if you increase your AVC contributions it will be of benefit from a ‘Top Slicing’ calculation perspective as you are reducing the average tax you pay in the year, but are you in fact also reducing the calculated value of ‘A’ as AVCs are not included in the calculation of SCSB, and is therefore not of added benefit?

Cheers,
qwerty

 

[Deas]

Hi Qwerty, I can answer the first part. SCSB includes all earnings over the period inclusive of overtime/allowances etc.. In terms of VHI - is this paid to the VHI directly or by way of an allowance that you can pay yourself. If the former, no it is not included, if the latter, yes it is. The former is not salary it is a taxable benefit.

I don't know the answer to the second part.

 

[Nige]

Deas is wrong. The average remuneration figure for the SCSB calculation is all "emoluments" for the past 3 years. For this purpose, emoluments includes benefits in kind, AVCs (and other pension contributions made by the employee) and share options.