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tax on death in service payment help please

andyred_2
Posts: 4 Newbie
My dad died in December and got a death in service benefit of £400000 which we got told it was tax free ,plus a monthly pension of £200,the company as just wrote to us to say this lump sum could be taxable due to the new law on April 6th and needs the name of the trustee. my dad has no other pension, this is started to worry my mother as she is just getting over my dads sudden death. Is this right can they ask for the lump sum to be taxed. Thanks for any replies
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andyred, sorry to hear about your dad. Can't help you on your question, I'm afraid, but while we're on the subject, I am about to start a new part-time job for which I get paid a basic hourly rate + enhancement for working outside of normal hours. Does anyone know if my death-in-service payment would be calculated on basic rate or basic+enhanced? (Hopefully my family will never find out for real anyway).:heartsmil When you find people who not only tolerate your quirks but celebrate them with glad cries of "Me too!" be sure to cherish them. Because these weirdos are your true family.0
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andyred, sorry to hear about your dad. Can't help you on your question, I'm afraid, but while we're on the subject, I am about to start a new part-time job for which I get paid a basic hourly rate + enhancement for working outside of normal hours. Does anyone know if my death-in-service payment would be calculated on basic rate or basic+enhanced? (Hopefully my family will never find out for real anyway).
Depends on the rules of your pension scheme, whitewing. Either is possible.0 -
Depends on the rules of your pension scheme, whitewing. Either is possible.
Don't have a pension with them, but still entitled to death in service. Will get the contract soon hopefully but I don't expect it will be laid out there in the first draft unless I ask (company employs hundreds and standard contracts - I'll be one of a very few doing these hours and I bet no-one has asked before):heartsmil When you find people who not only tolerate your quirks but celebrate them with glad cries of "Me too!" be sure to cherish them. Because these weirdos are your true family.0
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