AVC contributions

robin4

I set up an AVC and contributed with a lump sum for the first tax year. I recorded an additional lump sum and received tax relief with the one off payment.
From there on, I contributed from my gross salary from my NHS employer.

Do I still need to make an annual declaration of amounts which I contributed on my SA as I already receive the tax relief on the one off payment as well as the relief at source for the 19/20 tax year ?

i am confused because it could also mean there is a significant impact on the separate tax credits assessment for the household. In previous years, my partner received no tax credits but because of my large contributions to my AVC, she appears to receive them- which appears to be too good to be true ! 

My increased pension contributions are reflected in my tax code but I am unsure why the tax credits should be awarded.

Thanks in advance 

huckster

Robin, the lack of replies within 24 hours indicates a complicated question is involved here. Might be best to raise the question with HMRC as at least then you will be guided by what they are telling you.

calcotti

OP might also be better posting in the cutting tax forum for a question about SA.

NedS

Your pension contributions are taken into account for tax credit purposes. Tax credits are calculated based on your Net income, so after deductions for Tax, NI and Pension contributions have been taken into account. If you make AVCs directly from your salary, these are already taken into account, but you will need to notify Tax Credits about any additional AVC lump sum contributions. Whether Tax Credits will pick that up automatically from any Self Assessment, I am not sure, as I've never had to do self assessment. If they haven't, you can inform them at the end of the tax year as part of your Tax Credits annual verification - that is how I always used to do it.