Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • dharm999
    • By dharm999 16th Jul 17, 10:45 AM
    • 277Posts
    • 227Thanks
    dharm999
    Employer contribution and annual allowance
    • #1
    • 16th Jul 17, 10:45 AM
    Employer contribution and annual allowance 16th Jul 17 at 10:45 AM
    Can an employer pay 40k into my pension, if I do it by salary sacrifice, and the sacrifice means my salary is less than 40k, after the sacrifice? I think the answer is yes, but I am not sure.

    Thanks
Page 1
    • TomSurrey
    • By TomSurrey 16th Jul 17, 11:11 AM
    • 15 Posts
    • 9 Thanks
    TomSurrey
    • #2
    • 16th Jul 17, 11:11 AM
    • #2
    • 16th Jul 17, 11:11 AM
    Hi sorry your post isn't clear, might be easier to lay it out as a scenario with a bit more detail
    • Triumph13
    • By Triumph13 16th Jul 17, 12:06 PM
    • 1,005 Posts
    • 1,185 Thanks
    Triumph13
    • #3
    • 16th Jul 17, 12:06 PM
    • #3
    • 16th Jul 17, 12:06 PM
    Yes you can, just so long as the salary sacrifice doesn't take you below minimum wage.
    • dharm999
    • By dharm999 16th Jul 17, 4:33 PM
    • 277 Posts
    • 227 Thanks
    dharm999
    • #4
    • 16th Jul 17, 4:33 PM
    • #4
    • 16th Jul 17, 4:33 PM
    Yes you can, just so long as the salary sacrifice doesn't take you below minimum wage.
    Originally posted by Triumph13
    It doesn't. I was worried that as my post sacrifice earnings were less than 40k, the annual allowance would be restricted.
    • Triumph13
    • By Triumph13 16th Jul 17, 9:14 PM
    • 1,005 Posts
    • 1,185 Thanks
    Triumph13
    • #5
    • 16th Jul 17, 9:14 PM
    • #5
    • 16th Jul 17, 9:14 PM
    Employer contributions count towards the annual allowance, but they are ignored with regards to the earned income limit. At the extreme you could be employed for 1 hour a year and paid £7.50 salary and £40k of pension contributions - but if you find anyone hiring on those terms please let me know!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,681Posts Today

8,963Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin