Net relevant earnings for Prior years AVC top up

HI All

I have been looking around the revenue website and here for an answer but cant find anything related....

I have an occupational pension which I receive company % against my base salary. In addition I pay an additional AVC based on my age limit. I am currently trying to pay for a backdated prior years AVC up to the max of my Net relevant earnings figure for 2019

EXAMPLE - Rough figures rounded for ease:
My base salary = 85K
Additional Allowance +bonus = 25k

Paid AVC for 2019 thru Sal (85k at 20%) €17k
TTL Allowable AVC for 2019 (110k ' 25%) = €27.5

I am encountering a problem when I try and enter this into the tax return on my account as it states my gross income as only 96k. Presumably because my co. already deduct the AVC at source, my gross pay for the year is showing as the net figure for which income tax is then paid. The USC Calculation is made in the full using the 110k figure

So it wont let me utilise the 110k figure and therefore claim back the tax for this top up, I assume this is a common enough process so I must be going wrong somewhere, has anyone experience of completing?

thanks
50andO

Advance beyond that point and it should give the correct result for the year when you enter your additional AVC for tax relief.

Hi Mugs game

tnx for reply - I never tried to move past by accepting the lower figure, I see now that it will let me add it (AVC under tax credits), but only if I leave NRE as the NET pay figure. (It wouldn't let me enter the higher net relevant figure, it says this cannot be higher than gross)

It also asks for the amount of relief that has already been provided, so maybe this is where the calculation will come together after submitting. The next page is submit declaration, which still shows the Gross pay as the lower net figure. I'll submit and keep my fingers crossed

tnx
50+O

50andOut said:

I am encountering a problem when I try and enter this into the tax return on my account as it states my gross income as only 96k. Presumably because my co. already deduct the AVC at source, my gross pay for the year is showing as the net figure for which income tax is then paid. The USC Calculation is made in the full using the 110k figure

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if its under a net pay arrangement, tax relief is granted at source.

Itchy said:

if its under a net pay arrangement, tax relief is granted at source.

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Indeed, as I mentioned.

50andOut said:

Indeed, as I mentioned.

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As in that is why its not showing up as 110k. 110 less 17 is 93 ish and its showing you 96. It mightn't be inaccurate depending on your circumstances. In any case there is a line on the return that says something like "AVC made that has not previously received tax relief". I've often had to follow up a return with a message on myenquires just explaining my situation. It normally gets resolved fairly hastily.

Actually that's a tip to speed up processing slightly: after you've submitted a tax return with an off-payroll AVC, submit a "My Enquiries" immediately afterwards, reference the tax return, and attach a scan of the receipt from the AVC provider. They'll usually ask for it anyway when they process your return, so it helps a little to get it in advance.

Itchy said:

As in that is why its not showing up as 110k. 110 less 17 is 93 ish and its showing you 96. It mightn't be inaccurate depending on your circumstances. In any case there is a line on the return that says something like "AVC made that has not previously received tax relief". I've often had to follow up a return with a message on myenquires just explaining my situation. It normally gets resolved fairly hastily.

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Yes agreed, I get the deduction part - so gross is 96k for tax purposes as its net pay arrangement. My confusion is on the form Tax credits tab, there is Gross pay (auto populated) and then Net Relevant Earnings - NRE should be the 110, at least in my mind - but it wont allow a figure higher than the (reduced gross). As an aside the PAYE tab does show Pay for in tax as 96k and Pay for usc as 110k

I add the to the "AVC made that has not previously received tax relief" my backpaid amount and what I am now guessing is the field for "Amount of AVC contributions relieved under the net pay arrangement in 2019" - (17k) is where the calculation becomes whole...

I will send an enquiry straight away as suggested, I have always found the responses efficient and clear via my enquiries, but I tended to wait and see what happens first before sending anything, good idea to do straight away with the receipt.

Thanks both for the input!

50+O

fyi - I added the top up amount and left NRE equaling the net gross figure on the form - I did not send a query as I was waiting for the cert from pension provider thought i'd send together.

Anyway Revenue have already (in 1 day) calculated and added my p21 balancing statement to my documents showing the 40% of the top up as an overpayment which will be paid direct to my bank.

Efficient as always from revenue.