Am I getting my tax relief on my AVC's ?

[TwoWheels]

Hi All,
A question I have tried to work out the answer to, but failed.
I am trying to see where I am getting my tax benefit for my AVC's into the company pension.
From what I can see on my payslip, I am paying tax on my full earnings (Less my standard rate cutoff) and then paying my AVC's after tax, I was under the impression that my AVC's should be tax free?

I have pasted some of my payslip below to aid you in your advice (That I will appreciate very much)
Obviously I have taken out any identifiable details of either myself or my employer.
ERS PRSI THIS PRD 539.63
PAY DATE 31ST JANUARY 2006 ERS PENS THIS PRD 109.44
TAX PERIOD MONTH 01 MTHLY TAX CREDIT 357.17
MTHLY STD RATE CUTOF 2723.09
PRSI CLASS A1
HOURLY RATE 0.0000 WK1/MTH1

PAYMENTS DEDUCTIONS
UNITS VALUE VALUE TAX YTD
SALARY 2736.08 TAX PAID 1152.06 1152.06
COMMISSION 1 2670.27 EES PRSI 279.17 279.17
Med Ins-Notional 105.92 EES PEN 1 109.44 109.44
AVC 383.05 383.05
CHARITY 2.54 2.54
AXA INSURANCE 48.00 192.00

TOTAL PAYMENTS TOTAL DEDUCTIONS NET PAY
5406.35 1974.26 3432.09

 

[ClubMan]

Pension contributions within your age related tax relief limit for tax/PRSI relief should be marked on the payslip (often with an asterisk *) as non taxable and should be deducted from gross first and then tax and PRSI calculated on the remainder. Maybe you can sanity check the calculations using [broken link removed]? Where pension contributions that qualify for full tax/PRSI relief are made then you can reduce your gross annual income by the annual pension contributions and enter the reduced figure into the calculator.

 

[TwoWheels]

From the figures above, it does look like I am paying tax on my contributions I think, Would you agree? (Thanks for your help)

It seems to me that;
My salary is €5406
MTHLY STD RATE CUTOF 2723.09
MTHLY TAX CREDIT 357.17

AVC 383.05


TAX PAID 1152.06
EES PRSI 279.17

 

[ClubMan]

I can't reconcile the figures 100% but it looks in or around correct to me - i.e. you do seem to be getting tax relief on pension/AVC contributions. I haven't done the PRSI calculations but here is an outline of my tax calculations:

Remuneration
Salary: €2736.08
Commission: €2670.27
Gross: €5406.35

Pension
Pension: €109.44
AVC: €383.05
Total pension: €492.49

Taxable
Gross: €5406.35
Total pension: €492.49
Taxable: €4913.86

Tax
Standard rate: €2723.09 @ 20% = €544.62
High rate: (€4913.86 - €2723.09) = €2188.77 @ 42% = €919.28
Gross tax: €544.62 + €919.28 = €1463.90
Less tax credit: €357.17
Net tax: €1106.73

This €1106.73 figure is not quite the same as the actual tax on your payslip of €1152.06 but maybe the discrepancy can be explained by (a) mistakes in my calculations (!) or (b) your total pension contributions being over your age related tax relief limit and thus not qualifying for relief on the full amount?

Does that make any more sense to you?

Maybe your employer can explain the calculations/payslip in more detail?