Skip to main content

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

  • Unpaid Year Off

    Hi I am taking a year of unpaid leave from my employment I have a couple of questions 1. How do I get my tax code adjusted as am currently higher rate tax payer and I will receive my annual bonus in the year off which will not trigger the higher rate - can I rely on my employer telling HMRC or do I have to ring. 2. I am funding my year off by taking my tax free lump sum from a pension pot that is not my current workplace pension however I am not taking any of the taxable portion of the pension as I am planning to return to work and I do not want to reduce the tax relief on future contributions to my current workplace pension. If I only take the tax free portion then am I correct that it will not affect future contributions 3. During my year off neither me or my employer will be contributing to the pension - when I return and restart the contributions will there be any issue with this as I have taken the tax free portion from the other pot - e.g will it be considered “recycling” - I will not be using any of the pension money to restart the pension it will be the normal salary sacrifice and matched contributions Thanks