Staying on at work after VER has been accepted.

GoingSolo

I’ve taken the opportunity to take VER from work later this year. But just the other day my employer has asked me to ‘help out’ and stay on to help cover training needs. No time limit has been given but I’m guessing 3 to 6 months.

I have a very good redundancy package whichon the pension I’d be paying 20%. If I took up the offer I’d be into the 40% tax band so as my pension is £18,000 plus salary of £40,500 before tax.

Should I asking for some form of remuneration to get off set the extra tax burden? After all, it’s like being head hunted.

theoretica

You can always ask. Will your employer still need to pay pension contributions for you? If they are saving this money it seems worth asking for it. Maybe they can afford to pay you more but for a shorter time.

getmore4less

Delay the pension,

fund a new pension

Work part time.

go self employed/ltd and retain some of the fees for future years


Negotiate a salary for the work, don't mention the tax that's your problem not the employers, don't forget that income from savings/dividends is also affected.

GoingSolo

Also happening at the time is the closure if the DB pension to a DC pension. I'll have to pay in for approx 3 months before VR date. If I stay on I'd keep this going as the scheme benifts for death in service are staying the same. Anyone know what % of salary I can pay into the DC scheme?

getmore4less

Don't forget if they go bust no money or possibly withdraw the offer.