Diverting Ј50k of salary into pension fund to claim welfare benefits

A question about : Diverting Ј50k of salary into pension fund to claim welfare benefits

Say I am a 28yr old man with a Ј65k income, are there any legal issues in diverting the maximum allowable Ј50k into my company pension plan, the maximum Ј243pm into childcare voucher plan (Ј2.9k) and living off the remainder Ј12.1k salary?

I would then declare Ј12.1k salary to the benefits office/HMRC in order to receive every benefit I would be entitled to on that income? 3 kids would equal a lot of LHA, a lot of child tax credit, a lump of WTC, probably council tax benefit and of course child benefit (Which looks like its going to be taken away in 2013 for higher rate tax payers)

The aim would be to retire at 55 with a very large pension pot. Forget the morals behind it, all I am asking, if its legally possible to do? If so, then surely this is a no brainer option if you can of course afford to live off a 'low' welfare income.

Thanks in advance.

Best answers:

• I don't quite knwo what to say to you.
  Even if it is legal, I hardly see that this is what the benefit system is for.
• Strange how this is being asked the same day as the government launches its "crackdown" on benifit fraud...
• ...and it has got to be the most selfish post I have ever read on this forum.
• If you could be done, I would do it.
  Money is Money,
• pensions are a weak subject but arent they capped at a million or is that just capp how much you put in?!
  O and naughty OP!! Thats very selfish. It make me soo angry that this guy is bumming a few grand from the government when every major organisation 'avoids' millions in tax and are catered for before anyone else.
• Yes it is morally wrong but no more than the non working generations of spongers. This is one of the reasons why the benefit system needs taking apart right down to the ground and starting again.
• Basically no you can't do it..
  You cannot pay more into a pension than you currently have as a Salary..
  So even if you messed with the figures / dividends / pay into a pension before you take a salary, you would only ever be allowed to pay in a maximum of Ј50k or match your current Salary.. whatever is lower.
  So ... the answer is no..
  as for your attitude towards the benefits system.. I hope you get caught doing something wrong and go to jail.
  have a good day!