Sacrifice Pension/AVC contributions Tax Relief

Miki

Do the Salary Sacrifice Pension/AVC contributions which have been technically paid by my employer count as my contributions against my annual pension contribution allowance. I have written to HMRC but they have referred me to their website which is worse than useless and why I wrote to them in the first place! I was made redundant in July and would like to offset some of my redundancy money into a SIPP against tax.

jem16

Miki wrote: »

Do the Salary Sacrifice Pension/AVC contributions which have been technically paid by my employer count as my contributions against my annual pension contribution allowance.

They will count towards your Annual allowance of £40k as both employee and employer's contributions count.

They will not count towards your tax relief allowance of 100% of your earnings.

I was made redundant in July and would like to offset some of my redundancy money into a SIPP against tax.

That should be possible as the limit for tax relief is 100% of your earnings. If you need to contribute more than £40k you may be able to use Carry Forward which allows you to utilise any unused allowance over the last 3 years.