I want to top up my AVC for 2022 to the max allowed for tax relief. My salary is well below 115k limit.
I know the limit for my age (61) is 40% of my gross salary including both my 5% employee contribution to company DC pension and my AVCs.
I expected my total "DC Pension" contribution to be 5% of my gross pay but instead it is 5% of my salary - not including occasional extra pay for e.g. out of hours work.
So I expect that my max AVCs for 2022 is:
Max pension for tax relief = Gross Pay 84355.99 @ 40% = 33,742.40
Less already contributed pension + AVC = 28,991.64
Max AVC top-up for tax relief = 4,750.76
Or can I add Notional Pay to Gross Pay above?
Also, I think I can pay any additional AVC to the company pension fund and then claim tax relief by updating my tax return for 2022.
I have researched this, but can't seem to find a definitive answer. I am well aware of the age related limits for Pension/AVC contributions, but the question here is, does a BIK increase the amount that you can put in. I know a guy who processes Payroll, and they say it does increase the amount...
Yes you can add the extra pay in for the AVC calculation.
Provided you make your top up contribution before 31/10/2023 you can claim tax relief for 2022.