AVC Lump sum contribution

[Brainache]

I paid a lump sum in to flexiplan in March and RM sent me a tax certificate to send to tax office for tax rebate. Phoned tax office- they have the certificate but I`m not entitled to rebate because I`m not higher rate tax payer !! I`m hoping this is wrong. Also told Tax Credits Office that this lump sum comes off my earnings for last year but no joy so far.

[RobertT]

I paid a lump sum in to flexiplan in March and RM sent me a tax certificate to send to tax office for tax rebate. Phoned tax office- they have the certificate but I`m not entitled to rebate because I`m not higher rate tax payer !! I`m hoping this is wrong. Also told Tax Credits Office that this lump sum comes off my earnings for last year but no joy so far.

I haven't paid a lump sum into mine for a few years, but at the time I had to pay the gross amount by cheque and then got the tax refund(20%) a few weeks later through payroll. I didn't realise anything had changed to be honest!

I haven't got a clue how it affects tax credits though!

[ruralrobin]

Are AVC`s worth the trouble ?

[RobertT]

Are AVC`s worth the trouble ?

It depends how much you pay into them and for how long, what other pension provision you have and what your aspirations for retirement are.
Personally I'm determined not to work after 60 if I can possibly help it and the RM pension alone won't be enough to do that, so AVC's will give me more income and hopefully a lump sum too.
You also get 'free money' in the form of tax relief and if you pay into Bonusplan(section C only) you get a contribution off RM aswell.

[Brainache]

Thanks for reply RobertT - I`m awaiting a reply from RMpensions about the tax certificate. I don`t think anything has changed and the person at Tax Office told me wrong. We shall see.