Pension AVCs and tax

itsthelittlethings

Hi, I am making additional contributions towards my pension. I was under the impression that I would get tax relief of 20% on these, as I am a 20% tax payer. However when I check my payslip they are shown as coming out at the same time as NI, student loans, tax etc. Some of my pension contributions come out before tax, so I can see that I am getting tax relief on these.

Is there a mechanism for me to get the tax relief on the AVCs as I don’t see that I’m getting it at the moment.

Thanks.

Dazed_and_C0nfused

itsthelittlethings said:

Hi, I am making additional contributions towards my pension. I was under the impression that I would get tax relief of 20% on these, as I am a 20% tax payer. However when I check my payslip they are shown as coming out at the same time as NI, student loans, tax etc. Some of my pension contributions come out before tax, so I can see that I am getting tax relief on these.

Is there a mechanism for me to get the tax relief on the AVCs as I don’t see that I’m getting it at the moment.

Thanks.

Is the pension company adding 25% to your pension fund?  This would make them "relief at source" contributions.

NB.  25% equates to 20% of the gross contribution.

dunstonh

An AVC is a separate product from the main scheme.    So, the tax relief handling may be different to that of the remain scheme.    If the AVC is not going through as salary sacrifice then you would see the tax relief being handled by the AVC provider and you will see the tax relief on their transactions list.

itsthelittlethings

Dazed_and_C0nfused said:

itsthelittlethings said:

Hi, I am making additional contributions towards my pension. I was under the impression that I would get tax relief of 20% on these, as I am a 20% tax payer. However when I check my payslip they are shown as coming out at the same time as NI, student loans, tax etc. Some of my pension contributions come out before tax, so I can see that I am getting tax relief on these.

Is there a mechanism for me to get the tax relief on the AVCs as I don’t see that I’m getting it at the moment.

Thanks.

Is the pension company adding 25% to your pension fund?  This would make them "relief at source" contributions.

NB.  25% equates to 20% of the gross contribution.

Well I guess I just have to hope so.

saucer

Are you sure you mean an AVC rather than some other form of additional pension contribution? If it is an AVC you should have access to a written or online statement to see how it is doing/growing. You should be able to see that it says something like ‘your contributions’ and that these will likely be roughly 25% more than what your salary has gone down by. Because of grossing up that happens with all pensions you get, for example, £100 in your pension for an £80 net reduction in your salary/pay.