Pay annual bonus into Nest pension scheme?

marty___mcfly

I have an annual bonus of around £2k being paid to me this month. 

I read it is more tax efficient to pay a bonus into a pension scheme rather than receiving it as income. 

I am enrolled in the Nest pension scheme- does anyone know whether I would be able to get my employer to do this?

many thanks.

dunstonh

Most employers would facilitate that for you.   However, not all will.  You will need to ask them.

Albermarle

I read it is more tax efficient to pay a bonus into a pension scheme rather than receiving it as income. 

It is more tax efficient normally to pay any earned income into a pension , not just a bonus .

As long as you can wait until you are older to gain access to the pension.

Marcon

marty___mcfly said:

I have an annual bonus of around £2k being paid to me this month. 

1. I read it is more tax efficient to pay a bonus into a pension scheme rather than receiving it as income. 

2. I am enrolled in the Nest pension scheme- does anyone know whether I would be able to get my employer to do this?

many thanks.

1. That might be misleading. Assuming you have sufficient earnings, you'll get the same tax saving whether the contribution is made by you as a personal contribution or paid to the pension scheme. If you use bonus sacrifice (same priciple as salary sacrifice), you get an NI saving as well as the tax saving.
2. You need to ask your employer if they'll do bonus sacrifice. Nobody here can tell you, because it's very much an individual employer decision.