Is company SIP worth it?

Johan007

Thanks to the posts here I am going to be more cautious and looking to stop contributing as I have a fair amount in there now.

I am at a conundrum. For one year only I am lucky to get a large salary supplement that takes my earnings to:

(Salary + Supplements) - Pension = £42,350

Should I be awarded a £1000 bonus for example this will take me onto the higher rate of TAX at 40 percent on that bonus.

Now if I pay £1200 a year into a SIP…

(Salary + Supplements) – Pension – SIP = £41,150

…should this reduce the amount of TAX on my bonus to 20 percent?

tomo21217

Johan007 wrote: »

Thanks to the posts here I am going to be more cautious and looking to stop contributing as I have a fair amount in there now.

I am at a conundrum. For one year only I am lucky to get a large salary supplement that takes my earnings to:

(Salary + Supplements) - Pension = £42,350

Should I be awarded a £1000 bonus for example this will take me onto the higher rate of TAX at 40 percent on that bonus.

Now if I pay £1200 a year into a SIP…

(Salary + Supplements) – Pension – SIP = £41,150

…should this reduce the amount of TAX on my bonus to 20 percent?

Yes if the sip payment comes out as salary sacrifice.