All,
Hoping someone can advise, as this is beyond my comfort zone.
Circumstances are I am mortgage free, and still in my 30's. So I'm limited to tax relief on contributing 20% of my salary to pension (which I am). Company also contributes a significant chunk - over 12%. This is a DC Occupational Pension scheme.
I'm looking at ways to increase my pension funding. I know there are provisions to prevent me getting a company bonus to be treated as a Pension contribution. I'm assuming similarly I couldn't ask for a pay cut in return for a higher pension.
However, I am currently re-negotiating an employment contract, which involves a pay rise. This is specific to me, and not a company wide rise. Say for example my employer was offering me a 5k pay rise. Can I instead get them to make a 5k contribution to my pension? If pension contribution is part of employment contract is it OK, or is it still treated as salary sacrifice, and taxed as such?
Thanks,
Red.
Hoping someone can advise, as this is beyond my comfort zone.
Circumstances are I am mortgage free, and still in my 30's. So I'm limited to tax relief on contributing 20% of my salary to pension (which I am). Company also contributes a significant chunk - over 12%. This is a DC Occupational Pension scheme.
I'm looking at ways to increase my pension funding. I know there are provisions to prevent me getting a company bonus to be treated as a Pension contribution. I'm assuming similarly I couldn't ask for a pay cut in return for a higher pension.
However, I am currently re-negotiating an employment contract, which involves a pay rise. This is specific to me, and not a company wide rise. Say for example my employer was offering me a 5k pay rise. Can I instead get them to make a 5k contribution to my pension? If pension contribution is part of employment contract is it OK, or is it still treated as salary sacrifice, and taxed as such?
Thanks,
Red.