Discussion
looks likely I will be finished from my employer due to capability issue (long term sick)
I will likely only receive 3mths pilon
the q is can I request the majority is paid into my pension fund to eradicate most of the tax at source?
ie say for eg. I'm due 25k gross
can I suggest pay of 5k and rest into pension plan
Have I got this right that pension is deducted before tax? I may be wrong on this point , my head is scrambled at the minute
tia
I will likely only receive 3mths pilon
the q is can I request the majority is paid into my pension fund to eradicate most of the tax at source?
ie say for eg. I'm due 25k gross
can I suggest pay of 5k and rest into pension plan
Have I got this right that pension is deducted before tax? I may be wrong on this point , my head is scrambled at the minute
tia
By pilon you mean Pay In Lieu of Notice.
Yes, subject to the usual limits on pension contributions you should be able to shelter that "pay" from income tax. It's exactly the same as pay while you were in employment.
Another thought. You say you are leaving due to ill-health. Is there scope to get this dressed up as a Redundancy (up to £30,000 tax free) without upsetting any more generous ill-health pension arrangements? It will depend upon all the particular circumstances.
Yes, subject to the usual limits on pension contributions you should be able to shelter that "pay" from income tax. It's exactly the same as pay while you were in employment.
Another thought. You say you are leaving due to ill-health. Is there scope to get this dressed up as a Redundancy (up to £30,000 tax free) without upsetting any more generous ill-health pension arrangements? It will depend upon all the particular circumstances.
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