Pension AVC, can I max to include OT and on call payments and car allowance?

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landmarkjohn

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I am paying monthly maximum AVC for my age group on my base salary. I get paid overtime and on call, car allowance, and healthcare.

Can I make a lump sum pension AVC payment to take advantage of available tax allowance on the OT and on call portion of my salary? What about car allowance and healthcare as these are all added together and taxed

When I look at my payslip at the end of year the totals include basic, on call, OT, car allowance and I think BIK and healthcare. Thanks.
 
If anyone else can confirm it is the "Pay for USC" number (which in my case is the same as "Gross pay" number ) as per the ROS (revenue online) site that would be great. Thanks.
Screenshot 2025-09-04 at 12.52.24.png
 
Yes total pay but then there is the precentage limit set by age and the maximum income is €115,000. So a 41 year old can contribute €28,750 max total pension contributions per annum (=25%*€115k)
 
Fortune said:
Yes, that's right.
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On a related note, when entering the gross employment income on the Form 11, I've taken the gross income [for USC] and deducted my Working From Home expenses - this is due to the note on the online Form 11:

Gross employment income (regrossed salary figure to account for pension/AVC deduction under net pay arrangement) (Include BIK if related to this Income and deduct PAYE Expenses)

I go by the logic that these WFH expenses have already received tax relief, so by including them in the amount for calculating pension contribution relief is like taking a second bite of the cherry. Is this the correct approach?

Similarly, this year I need to factor in payment of a tax saver travel pass which is getting the appropriate tax relief. Do I need to subtract the amount upon which this relief was given when calculating the amount relevant for pension contribution relief?
 
johncb said:
I go by the logic that these WFH expenses have already received tax relief, so by including them in the amount for calculating pension contribution relief is like taking a second bite of the cherry. Is this the correct approach?
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Yes. The maximum deductible pension contribution is an age-related percentage of your "net relevant earnings". That's:
  • all your earnings from your employment (including the taxble value of any benefits-in-kind you receive)
less
  • work-related expenses that are tax-deductible
(There can be other deductions in special cases — e.g. if you make maintenance payments under a separation or divorce order, that also reduces your net relevant earnings.)
 
TomEdison said:
Yes. The maximum deductible pension contribution is an age-related percentage of your "net relevant earnings".
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It's mad how for all the online "calculate how much you can make an AVC for" examples, not one of them (that I can find) instructs the person to subtract these reasonably common deductions.
 
johncb said:
Similarly, this year I need to factor in payment of a tax saver travel pass which is getting the appropriate tax relief. Do I need to subtract the amount upon which this relief was given when calculating the amount relevant for pension contribution relief?
Click to expand...
This shouldn't be included in the 'pay for usc' to begin with so no adjustment should be necessary.
 
johncb said:
It's mad how for all the online "calculate how much you can make an AVC for" examples, not one of them (that I can find) instructs the person to subtract these reasonably common deductions.
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The easiest way I found to max out contributions for the previous year is to log into revenue and go through the motions as if you were going claim for additional AVC. For example if you thought you could have paid an additional €15K for 2025 put in €20K in the additional AVC box and the page will immediately update and let you know that €15K (or whatever the exact amount as calculated by revenue) is all that will be tax free. Then cancel the page etc.

Then you can make a payment into your pension fund, get a receipt and submit the claim. The tax is then returned to you in short time, weeks.
This is handy when your income varies. Hope it makes sense.
 
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