Hello,
I am starting a job in the UK. It will be my first "real job" out of university and I have a quick question about the company pension.
It's a normal pension scheme where both I and the company make contributions. In simple terms, unless I'm mistaken, that means that it will not be treated as a PFIC if I execute Art. 18 of the tax treaty, and I will only pay tax on the distributions when I withdraw from it.
There is an option called penwise, which
"is a 'salary conversion' arrangement that allows you and the company to make savings on NI contributions. That means:
- you do not make pension contributions directly into the pension plan;
- your pay is reduced by an amount equal to your pension contributions; and
- the company pays this amount, along with its contributions on your behalf into your pension account
"
My question is this: Will enrolling in this have any effect on the status of my pension regarding Art. 18 of the tax treaty? Will it change in any way the way I have to file taxes or create taxable income?
Thanks a lot!
Max
