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Employers pension conts tax free if paid as cash??

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Does anyone know if an employer can pay their employer pension contributions (due for a notice period not being worked due to redundancy) as cash and it be tax free, ie added to the tax free severance already being paid? Or if they are paid as cash do they have to be taxed?

thanks,

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  • Pete111
    Pete111 Posts: 5,333 Forumite
    Mortgage-free Glee!
    Curious2 wrote: »
    Does anyone know if an employer can pay their employer pension contributions (due for a notice period not being worked due to redundancy) as cash and it be tax free, ie added to the tax free severance already being paid? Or if they are paid as cash do they have to be taxed?

    thanks,


    If they are paid directly into your pension they will be tax free.

    If they are listed as 'payment in leiu of employer pension payments' (or similar) and paid as cash they will be taxed as if they were income

    If you can convince your employer to quietly add this amount to your redundancy pay this will be tax free (up to a total of 30k)
    Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger
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