Severance Pay and Pension contribution

Supernova

Hi all,

I am about to be made redundant and want to put everything but the £30K TFC of the severance into my pension.

I was planning to put the 3 months PILON in there too but apparently I can't.

Is there any reason why I shouldn't put some of the TFC in the pension in lieu of the PILON, to save having to claim 40% tax relief from HMRC?

Sorry, my brain is addled from so many calculations and spreadsheets recently.

Thanks

mgdavid

surely it will depend on the rules of the pension scheme; is it an Occupational scheme, DB or DC? or something else?

Supernova

Yes it's an occupational scheme and so severance less £30K would go in gross instead of being paid taxed.

Does it matter either way if I contribute some of the £30K TFC instead of the taxed and NId PILON as 80% into a SIPP and then claim the extra 20% back?

I'm thinking probably not and actually from a cash-flow perspective perhaps it doesn't really matter too much.