EVR with NRA65

[linntroika]

Hello
A friend in work today has asked me about placing £30K of his EVR package into an AVC. He has already taken his NRA60 three years ago and has not touched his NRA65 / DBCBS yet .He plans on taking the Nra65 when he turns 65 . Would he be better taking all his EVR now and getting hit with the tax or would he be better to place it into an AVC ?

Thanks in advance

[linntroika]

Ps his EVR package is likely to be around £60K

[RobertT]

There's no definitive answer to that, because it depends on individual circumstances, such as:

When in the tax year VR is taken if taking it as cash, or when in the tax year the NRA65/DBCBS/AVC's are accessed.
What other income has been earned in the relevant tax year.
The value of the DBCBS and any existing AVC cash in relation to NRA65 benefits.

But things to bear in mind:

The first £30k of a VR payment will be tax free.
AVC payments normally have to be made via payroll.
Large payments into AVC's won't benefit from PSE, as far as I'm aware.

[freespeech]

There's no definitive answer to that, because it depends on individual circumstances, such as:

When in the tax year VR is taken if taking it as cash, or when in the tax year the NRA65/DBCBS/AVC's are accessed.
What other income has been earned in the relevant tax year.
The value of the DBCBS and any existing AVC cash in relation to NRA65 benefits.

But things to bear in mind:

The first £30k of a VR payment will be tax free.
AVC payments normally have to be made via payroll.
Large payments into AVC's won't benefit from PSE, as far as I'm aware.

Large payments from a VR package will benefit from PSE as long as they are through payroll and it is agreed beforehand. Payroll need to be advised beforehand and will calculate whether it is likely to impact the lifetime allowance (very unlikely). The OP may wish to ask some questions about how soon the payment can be taken as part of his NRA65 payments as there is some regulation around this. Here is some more info....https://www.pensionsadvisoryservice.org ... Scheme.pdf

[freespeech]

Another useful link.......https://moneytothemasses.com/tax/tax-mi ... cy-payment

[westy23]

Surely if you have received a Evr payment you are no longer employed by the business and
therefore can’t make any Avc payments ??

[freespeech]

Surely if you have received a Evr payment you are no longer employed by the business and
therefore can’t make any Avc payments ??

You do it in your final pay packet whilst employed. Hence the need to involve payroll and the pensions team.