AVC’s - Minimum Wage and Overtime

[Clappedoutpostie]

So I’m doing plenty of docket over the Xmas period and wanting to pay it into my AVC account to reduce tax/ni. I believe my hourly rate still has to be above the minimum to benefit from avoiding tax and national insurance. Am I correct in thinking this and would this then further apply to the hours I’m putting in on docket as obviously the hourly rate is less so I would need to take this into account as well. I’m trying keep my AVC deductions on the left hand side of my payslip, 1 time it ended up on the right hand side. Thanks in advance.

[RobertT]

All of your pension contributions benefit from tax relief(as long as you don't pay in more than you earn).

But you only qualify for NI relief(aka salary sacrifice/PSE) if you stay within the limits of that scheme. If you fall out of PSE, your deductions will move to the right hand side of your payslip and you will pay more NIC's.
I'm a bit out of the loop, but as far as I'm aware the PSE rules associated with contribution limits and overtime as stated
in this 2021 CWU update still apply to members of the RMCPP and Nest.

Although I believe the participation threshold is now higher(£13,200?) and the hourly rates obviously are.

[Clappedoutpostie]

Thank you Robert.

[heapsy]

So I’m doing plenty of docket over the Xmas period and wanting to pay it into my AVC account to reduce tax/ni. I believe my hourly rate still has to be above the minimum to benefit from avoiding tax and national insurance. Am I correct in thinking this and would this then further apply to the hours I’m putting in on docket as obviously the hourly rate is less so I would need to take this into account as well. I’m trying keep my AVC deductions on the left hand side of my payslip, 1 time it ended up on the right hand side. Thanks in advance.

Overtime does not count towards what you can pay in to AVCs. Only basic pay is used to calculate the figure allowed. If your take home pay drops below the minimum wage, you drop out of PSE. Simple.

[RobertT]

So I’m doing plenty of docket over the Xmas period and wanting to pay it into my AVC account to reduce tax/ni. I believe my hourly rate still has to be above the minimum to benefit from avoiding tax and national insurance. Am I correct in thinking this and would this then further apply to the hours I’m putting in on docket as obviously the hourly rate is less so I would need to take this into account as well. I’m trying keep my AVC deductions on the left hand side of my payslip, 1 time it ended up on the right hand side. Thanks in advance.

Overtime does not count towards what you can pay in to AVCs. Only basic pay is used to calculate the figure allowed. If your take home pay drops below the minimum wage, you drop out of PSE. Simple.

Not only do the CWU say OT can come into it, RM do too: copied from here