Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 25 Sep 2024 15:37:44 GMT by SMH Gardezi
Good morning, One of our employees contract has been terminated and a company has decided to pay her £45,000 redundancy/ termination payment & £14,500 notice pay (taxable). I understand that the redundancy/termination payment up to £30,000 is tax free. To save tax & NIC, she wants to contribute all of her notice pay £14,500 & £15,000 of her redundancy/termination payment out of £45,000 into a salary scarifies pension scheme as an additional voluntary contribution, is it possible or allowed, please advise?
Posted Wed, 02 Oct 2024 12:35:30 GMT by HMRC Admin 8 Response
Hi,
If she already has a salary sacrifice for pension in place then yes she can make the payments to the pension scheme.
Thank you.

You must be signed in to post in this forum.