How much tax relief will I receive on my AVCs?

You receive tax relief on AVCs paid through the payroll automatically and this will be at your highest marginal rate of tax.  Please note that if you fall into a higher rate tax band, tax relief at that higher rate only apply at the higher rate to the extent that earnings exceed the start of the higher rate tax band.  For example if your earnings exceed the tax band by £2,000 but you pay £3,000 in pension contributions, you receive tax relief at the higher rate on £2,000 and at the lower rate on the remaining £1,000.