AVC, before or after?

[sweepster70]

If I'm paying £300 into my AVC each month, I believe the money comes out before the tax is taken?
Does this mean the whole £300 will come out, plus the 20% and the national insurance, meaning you will benefit around £84, meaning £384 will be paid into your AVC?
I've also heard that if you pay £300 only £246 will be taken, plus tax relief and national insurance, taking it to £300. Is this correct?

[RobertT]

With RM, the amount on your pay slip is the gross figure and represents the actual figure going into your AVC. But your income tax and NIC's are being reduced accordingly, because you're getting tax relief and salary sacrifice(PSE) at source, meaning each £1 gross is only costing you 72p net. So a £300 gross monthly contribution is only reducing your take home pay by £216.

If you were paying into a personal pension, a £1 contribution would be increased to £1.25 with the addition of tax relief. So £300 per month would total £375.
*Salary sacrifice doesn't apply to pensions outside of the workplace.

[sweepster70]

Thanks Robert, I understand now.