#11



Salary sacrifice is a very good deal, especially if the employer passes on their NI savings. I recently bumped mine up to 40% and would really like to fit 50% in the next few years.







If the employer passes on 100% of their NI saving then it will be 13.8% of the contribution for a basic rate tax payer. So £100 contribution attracts an addition of £13.80.
Originally posted by webnibbler


Yes, they do, and that's how I understand it. Sorry if I wasn't clear in the initial post.

Quite unusual apparently for a company to pass on all the savings.

#12



The main upsides are that you can move benefit more than just the drop in NI and tax if it means your salary now takes you out of the net of various restrictions. So if you have kids and earn £55k, pension of £5k will mean you can receive full child benefit.
Originally posted by jimjames




Exactly what I plan to do next tax year. Take advantage of increasing my salary sacrificed pension contribution to maintain child benefit contributions for my three children. Win Win .

#13



Exactly what I plan to do next tax year. Take advantage of increasing my salary sacrificed pension contribution to maintain child benefit contributions for my three children. Win Win .
Originally posted by Mogley


This is a massive loop hole isn't it.



So pension contributions doe not have to be entered on a claim for Tax Credits?

#14
I'm just enjoying this while I can as every year I expect the Chancellor to tighten up salary sacrifice schemes in the Budget but we escaped again yesterday.



I also like the fact that you don't have to remember to claim back the extra tax as a higher rate payer.

#15



Was advised to salary sacrifice some time ago, but the rules of our pensions were not explained. Had built up £96,000. Now discover that what you can take out in cash is equivalent to 25% of your total pension pot. For us that means we can take just over 50k in cash but have to use the remaining 46k to buy additional annuity. If we had known about the rule we would have stopped the salary sacrifice when it reached 50k . Fells like we have lost 46k through poor advice.
Originally posted by aajax42


Who supplied the advice?

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