Salary Sacrifice Query and Help Needed

cameroon95

Yes the SS and AVC are to the same pension pot by Aegeon.

 I cannot see where any tax relief is added on my pension or my payslip.

I can see my employers contributions are 450( which is 225 x 2), this has me puzzled a bit as its upposed to be 225 which is 5%...

Dazed_and_C0nfused

cameroon95 said:

Yes the SS and AVC are to the same pension pot by Aegeon.

 I cannot see where any tax relief is added on my pension or my payslip.

I can see my employers contributions are 450( which is 225 x 2), this has me puzzled a bit as its upposed to be 225 which is 5%...

I think you have misunderstood a fundamental principle of your pension.

You aren't making any normal contributions.

You are agreeing to forego some of your salary in return for your employer contributing more to your pension fund.  So both 5%'s are employer contributions.

Are the AVC contributions showing as personal from you or from your employer?

cameroon95

The AVCs are shown on deductions coming from my salary - same as tax etc (£900).

They are separate from employer 

cameroon95

I asked my pension provider and they said my employer should be considering the tax relief? Should I still contact HRMC , this is the reasons below when I asked them about my AVCs and tax relief.

Dazed_and_C0nfused

That response is specifically about net pay contributions.

To be clear there is no pension tax relief with net pay contributions.

You benefit by not being tax on part of your income in the first place and always receive the maximum possible tax relief each payday.

For example your salary is £50,000 and you make net pay contributions of 10%.

Your taxable pay, the amount on your P60 will be £45,000.  So you have avoided paying tax on the £5,000 pension contributions.

Net pay contributions do not save you any National Insurance.

You don't need to ask your employer about pension tax relief be used none is due.

As far as your personal income tax is concerned you never need to tell HMRC about these contributions either.

cameroon95

This is what my payslip says , 

Paying 5% salary sacrifice and 20% AVC , am I getting tax relief?

Dazed_and_C0nfused

I'm confused now, where do the net pay contributions from the previous post feature?

molerat

Looking at that pay slip your pension payment of £900 is taken from your gross pay before tax is calculated, a net pay arrangement.  There is noting further for you to claim.  It looks like you are on the standard S1257L tax code with a taxable monthly pay of £2326 which puts you in the 21% tax bracket - 41% starts at £2591 taxable.  It may be worth increasing the sacrificed pay at the expense of the AVC as that will save up to 13.25% NI contributions - you get an extra £4.64 for the first £100 and £13.25 for each £100 after that in your take home.

Pat38493

I'm a bit confused as to why one would pay AVC rather than simply increase the salary sacrifice contribution percentage to the scheme in the first place?  I'm far from an expert though so I'm sure someone will enlighten me.

cameroon95

I was under the impression from my work that I could only pay maximum 5% salary sacrifice.

I am now querying this with my employer today