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Is company SIP worth it?
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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?0 -
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.0
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