NEST SALARY SACRIFICE AVC

Question

I have a few employees who wish to add AVCs to their salary sacrifice pension; some are a percentage and some a fixed amount. 
 How do I apply these to ensure the correct treatment for tax and NI?

Andy Rickeard · Answer

Hi Michelle, Thanks for using Community Hub. Much depends on how you want the AVC to work. AVCs don't adhere to auto enrolment so so if the pension scheme uses qualifying earnings they are ignored. Do you want the AVCs to work as salary sacrifice? They don't by default, they calculate pre tax but post National Insurance. If you can advise how you would like to apply them then we can advise how to achieve this in the software. Feel free to reply to this post with more information so we can take a look, or reach out to Sage 50 Payroll support so they can look at it for you: Sage 50 Payroll Support > Regards, Andy Sage UKI

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