Diverting £50k of salary into pension fund to claim welfare benefits

atush

Well we weren't all condoning it. At times I felt lost among the crowds of the OPs admirers though lol

zagfles

property.advert wrote: »

I telephoned them the other day to ask them directly.

I went through and asked whether hey knew about salary sacrifice and so forth and they did so I asked whether there was any issue with starting or increasing a salary sacrifice with specific when as a direct result, it may give rise to a claim for tax credits or increase the amount of tax credits payable.

They were quite adamant that this was fine. I even went so far as to say that it seemed "wrong" but again, they were insistent that as long as the scheem was authorised, you were eligible to claim increased tax credits based on your lower income.

They seem to have changed their tune. 9 months ago it was definitely the case that any salary sacrifice, unless for for childcare vouchers, had to be referred to the TAL with full details of contract change, payslips etc. This included sacrifices for pension. See this thread:

https://forums.moneysavingexpert.com/discussion/3114240

But the manual has now changed and they seem to be accepting sacrifices for pension and few other things, see http://www.hmrc.gov.uk/manuals/tcmanual/TCM0044060.htm

BLB53

I don't understand why anyone is condoning such selfishness at a time when the country is in financial trouble.

Not everyone is condoning what the OP is proposing. Here's my contribution from last week (page 2)

Whether or not it is possible misses the point, imo it is morally corrupt and it is no wonder the country is in such a mess because it has created a society where people think it is ok to even consider this to be an option.

zagfles

Zelazny wrote: »

With three kids, I get the following (using the calculator at https://www.turn2us.entitledto.co.uk/ based on single adult with three kids and 12.1k salary):

157.22 pw child tax credit
218.68 pw working tax credit
34.77 pw council tax benefit (I put down a council tax bill of £1,980 pa as in the OPs post #7)
164.94 pw Housing benefits (I put in LHA allowance of £750 pm as in OPs post #7)
47.10 pw child benefit

Total 622.71 pw.
= 32,558.88 pa.

Bear in mind that these figures are not taxable. The OP also has 12.1k taxable income, which should give a net amount of £10,590.36 after tax and NI, giving total net income of:
£43,149.24

In order to have this much left after you've paid tax and NI you'd need to earn somewhere in the region of £63k.

For HB, LHA and CTB only half the pension contribution can be used to reduce income.

I'm sure there'll be procedures concerning salary sacrifice like there are in tax credits.

thistledome

atush wrote: »

Well we weren't all condoning it. At times I felt lost among the crowds of the OPs admirers though lol

BLB53 wrote: »

Not everyone is condoning what the OP is proposing. Here's my contribution from last week (page 2)

Whether or not it is possible misses the point, imo it is morally corrupt and it is no wonder the country is in such a mess because it has created a society where people think it is ok to even consider this to be an option.

I said "I don't understand why anyone is condoning the OP". I am talking about the people who are condoning the OP. If you are not condoning the OP, then the post isn't about you.

Just to be clear: I'm saying I don't understand.

I'm not saying: "everybody is condoning OP"

nor am I saying:

"nobody should be condoning OP", as everyone's entitled to their opinion.

Hope that clears things up.

Sorry if I sound tetchy, this forum has broken my brain today with all the misconstruing I've had :rotfl:

Debbie_A_3

thistledome wrote: »

But OP doesn't have a desire to support himself. He has a desire to let the taxpayer support him and his children whilst squirreling away vast sums of money so he can retire at 55, whilst said taxpayers will mostly be working until they're 67 to support him.

But the OP is a taxpayer too, and the "said taxpayers" could be playing the same game themselves.

I need to admit to playing this game myself here. Our family income last year was a shade over £40k. So they were going to take our child tax credits away (the family element). I got on the phone to them and learned that gift aided donations were deductable. Once I had deducted gifts (that we were already making) our projected income came in under £40k and we kept the tax credits. Is this wrong? I'm not sure. The tax credits are ours as of right but we only kept them because I can deal with the tax office, I am not frightened of filling in forms, and I am numerate.

The problem is that the whole tax and benefits system is far too complicated, mainly as a result of the previous government's desire to micromanage and control every aspect of our lives.

Debbie

[Deleted User]

I think this is a wind up actually I mean the title of the thread just sounds like someone trying to stir up a debate & I hope it is cos if this person is being serious they make me sick!

Someone earning that amount of money does not need welfare benefits!

People who need welfare benefits do not have to worry about stashing 50k away a year they have to worry about much more like where their next meal is coming from or how they are going to pay for their gas & leccie

I know that some people on benefits abuse the system aswell & maybe dont deserve it but this person even though they are a taxpayer would just be cheating the system aswell in my opinion.

God I didnt have rant on about this - Sorry!

D

Carolanne

This post is not related to the last one but pensions forum seems the best place for my question.
Has anyone else contributed to the RNPFNS Royal pension fund for nurses before it was taken over by Liverpool Victoria.I have been paying into 2 separate policies since 1987/1990 and noted that the yearly update on progress only shows one of the pension forecast amounts but both policy nos.I telephoned LV and the guy told me that 'our database doesn't like some of the old policies so they don't show up'He told me that someone will calculate my policies by hand and get back to me'
I am absolutely gobsmacked by this and wonder if others like me who'trusted the RNPFNS implicitly' may have had parts of their pension possibly lost in the system if you don't have the original paperwork or are distracted by ill health or similar this could be a real 'earner' for LV or am I just cynical??
Anywho fellow RNPFNS beware!!!

atush

Not wrong if you were claiming for things you were already doing, no. Stupid for not claiming them last year? Yes ;-)

But I fail to see the blinders on over the using of tax credits you are eliglble for, or manipulating to change things so you can gain the most off the taxpayer.

We are not talking about (and in my opinion a troll as he hasn't been back) a person who reduces his income in order to claim benefits meant for the poor.

Yorkie1

Carolanne wrote: »

This post is not related to the last one but pensions forum seems the best place for my question.
Has anyone else contributed to the RNPFNS Royal pension fund for nurses before it was taken over by Liverpool Victoria.I have been paying into 2 separate policies since 1987/1990 and noted that the yearly update on progress only shows one of the pension forecast amounts but both policy nos.I telephoned LV and the guy told me that 'our database doesn't like some of the old policies so they don't show up'He told me that someone will calculate my policies by hand and get back to me'
I am absolutely gobsmacked by this and wonder if others like me who'trusted the RNPFNS implicitly' may have had parts of their pension possibly lost in the system if you don't have the original paperwork or are distracted by ill health or similar this could be a real 'earner' for LV or am I just cynical??
Anywho fellow RNPFNS beware!!!

Carolanne, please start a new thread - your question and replies will get completely lost on this thread as it is still active and on a completely different topic.

To start a new thread go back to the pensions forum index, and the new thread button is at the top on the left.