AVC's? Non taxpayer at present

magic57

Hi Any advice is welcome. I find the whole pension area very confusing to say the least!

I pay 5.5% of my salary into a local gov scheme. I'm 57 years old, female and married and will probably work until I'm about 64 ish.
At present I'm just on the threshold of not paying any tax as I'm part time. However I've just started up as a sole trader and although I'll be luck to break even this year next year I may have to pay some tax.
My question is: Is it worth paying AVC's or is there another scheme that may benefit me more.
If I pay AVC's but don't pay tax in my employment how would the tax office know I was paying them to get tax relief if I tip into the tax paying bracket? Is there a section on the self assessment form to say how much I'm paying in. (If I decided to pay AVC'S)
Many thanks. :A

atush

Your AVC provider would claim tax back for you.

Another option is to open PP or Sipp.

You can contribute up to your income or 2880/3600 whichever is higher. But you'd need to deduct the LGPS contributions from that allowance.

xylophone

AVC's? Non taxpayer at present

https://forums.moneysavingexpert.com/discussion/5243730

See post 2.

https://www.pru.co.uk/pdf/LAVK0846.pdf

"Your employer will take your payments directly from your pay and send them to us."

https://www.gov.uk/workplace-pensions/managing-your-pension

You might prefer to make contributions to a personal pension "relief at source scheme" rather than AVC through LGPS?





https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/