Now that we are close to the end of this tax year, you may want to consider making a lump sum Additional Voluntary Contribution (AVC), with the aim of building up your retirement benefits. Lump sum payments can be made in addition to any regular AVCs you pay.

Lump sums can be paid at any time during the year. As long as you have enough salary to pay for it after necessary deductions like National Insurance contributions, you can pay any amount you wish. If you are a high earner, you should remember that an Annual Allowance limit of £50,000 will apply for tax relief purposes.

Paying direct
If you want to pay a lump sum AVC, it is easiest for Payroll to deduct it directly from your salary. To have a lump sum deducted from your March salary, the Pensions Service Centre must receive your form by 17 February 2012.

Paying by cheque
However, if you wish to make a lump sum payment greater than your March payroll, you will need to send a cheque, made payable to your scheme trustees, to the Pensions Service Centre. Please contact the Pensions Service Centre for further details about this.

If you do pay by cheque, you will have to claim the tax relief yourself via HM Revenue & Customs, as tax relief cannot be given via Payroll for this method. The last day for the Pensions Service Centre to receive and process a cheque before the tax year end is 23 March 2012.