Temporary Divorce to Transfer Pension Assets to my wife?

Wobblydeb

ShowUsTheMoney wrote: »

Wow I didn't know you could do this ... Phew. Say if you do this for a few years.......can you then reduce the contribution when the time comes ???

Also is company car allowance and bonuses (not guaranteed) all added to the income first e.g. salary £50k, car £5k, bonus £7k = £62k....so you would need to add £12k to your pension pot to bring you down to £50k and then qualify for child benefit ??

Yes, you can amend the contribution, but only on life changes:
https://www.gov.uk/salary-sacrifice-and-the-effects-on-paye

I haven't had a look at the detailed guidance around taxable benefits such as car allowance, but I think your income counts as £62k so you'd need to sacrifice £12k. If your bonus is not guaranteed you would be better off taking the child benefit, then completing a self-assessment form and repaying it - just in case your income comes in between £50k-£60k.

It is well worth looking into salary sacrifice if you don't need the income today. I give up £10.5k cash in my pocket per year and get

• £17.6k into my pension (thanks to some matching by my employer)
• £1.7k extra childcare vouchers & associated tax savings
• £0.5k extra child benefit above what I would keep if I didn't do the salary sacrifice

ShowUsTheMoney

Thanks for this. I have asked my HR dept what options are available to me if I want to increase my contributions. It's amazing what you learn from this site.

Loughton_Monkey

ShowUsTheMoney wrote: »

Thanks for this. I have asked my HR dept what options are available to me if I want to increase my contributions. It's amazing what you learn from this site.

While you're there. ask them about one I've just thought of. Here's the scam....

Tell them from next month to pay you no salary. Same the following month. And so on until they have saved £30K in gross salary (plus employers' NI by the way).

The day after, they pay you £30K redundancy money. Tax Free. Day after that, they employ you back again, at original terms, plus agree to top up your employer pension contributions to what they would have been.

Repeat next year. Ad infinitum.

ShowUsTheMoney

Maybe you should create a template

michaels

ShowUsTheMoney wrote: »

Thanks for this. I have asked my HR dept what options are available to me if I want to increase my contributions. It's amazing what you learn from this site.

Don't forget the employer saves 13.8% nics on your salary sacrifice money which it would only be fair if they shared some of it with your pension.

michaels

Loughton_Monkey wrote: »

While you're there. ask them about one I've just thought of. Here's the scam....

Tell them from next month to pay you no salary. Same the following month. And so on until they have saved £30K in gross salary (plus employers' NI by the way).

The day after, they pay you £30K redundancy money. Tax Free. Day after that, they employ you back again, at original terms, plus agree to top up your employer pension contributions to what they would have been.

Repeat next year. Ad infinitum.

Not that I have looked into this but you must be paid NMW in every salary period.

atush

Malthusian wrote: »

No you aren't. Bring an empty bottle and ask a bar on the other side if they wouldn't mind filling it from the tap. Or just drink enough water before you go through.

I have been told to fill in toilets, no free. where taps are hot only

bigadaj

atush wrote: »

I have been told to fill in toilets, no free. where taps are hot only

Have we been sampling something other than water?

Malthusian

Find a bar that isn't staffed by dicks.

I confess that I haven't actually had to do this, because I'm not one of those overgrown babies that thinks they have to carry around a bottle of Evian all day. But anecdotal evidence suggests that you shouldn't have try more than two bars before you find someone who is not overworked and will happily fill a water bottle from the tap if you ask nicely. If it's a pub in a UK airport they may be required by law to serve you tap water for free, but I don't know the exact chapter and verse.

atush

bigadaj wrote: »

Have we been sampling something other than water?

No this is the actual truth. In my local airport, they say (behind the one and only bar) they dont have tap water. So I cant have any. In the toilets, there is hot water only.

And besides this, until this past year, I have had EMPTY water bottles taken from me at security. This past year or so they have allowed me to bring an empty one though. In the USA, I can bring a bottle with frozen water thru if I have drunk all the liquid. In the UK they take the frozen (therefore not liquid) bottle from me.

In the USA there are free cold water drinking fountains in all terminals to fill your bottle Not in the UK.

Some barmen in the UK will fill my empty bottle (but only if I buy a drink).

So basically not as easy as it sounds.