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.