Tax relief on AVC

swanny65

I am a Civil Servant and part time self employed.

I have paid into the Civil Service pension scheme for 24 years. I have for about 13 years paid an AVC contribution of £50.00 a month to Standard Life. This is an in house scheme and not a Free Standing AVC.

I receive tax relief at source on my £50.00 a month contribution. Until recently this was fine as I was below the 40% tax band. However this year my self employed profits will take my total taxable income into the 40% band, but my employed (Civil Service) income will be taxed at basic rate only as it is around £32000.00.

How do I reclaim higher rate relief on my AVC or can I ask Standard Life to reclaim the additional tax relief and added it into my contribution fund as a one off payment. After all it is an unexpected small bonus.

Please move the post to cutting tax if applicable.

hansoff

swanny65 wrote: »

I am a Civil Servant and part time self employed.

I have paid into the Civil Service pension scheme for 24 years. I have for about 13 years paid an AVC contribution of £50.00 a month to Standard Life. This is an in house scheme and not a Free Standing AVC.

I receive tax relief at source on my £50.00 a month contribution. Until recently this was fine as I was below the 40% tax band. However this year my self employed profits will take my total taxable income into the 40% band, but my employed (Civil Service) income will be taxed at basic rate only as it is around £32000.00.

How do I reclaim higher rate relief on my AVC or can I ask Standard Life to reclaim the additional tax relief and added it into my contribution fund as a one off payment. After all it is an unexpected small bonus.

Please move the post to cutting tax if applicable.

Write to/telephone HMRC and give them the following figures for the current tax year-

1 Your gross Civil Service salary
2 Your net self employed profits
3 Your gross AVC's

and ask them to include in your tax code the higher rate relief (40%-20%) on your AVC's.

Do not involve Standard Life.

Tighthead

Speak to your tax office and request to complete a self-assessment. This will then ensure that you are taxed appropriately and receive tax relief on your AVC contribution as appropriate.

swanny65

Tighthead wrote: »

Speak to your tax office and request to complete a self-assessment. This will then ensure that you are taxed appropriately and receive tax relief on your AVC contribution as appropriate.

I have just completed this years self assessment. Whilst it isn't exactly clear where the pension contributions need entering of the form I have done so, after checking with the help line, and my liability has been reduced (correctly) accordingly.

Many thanks