Scottish income tax on pension contributions.

molerat

Scottish income tax makes no real difference to the method of contributing, all it does is moves bands and rates. What you are currently doing is salary sacrifice, the company pay a pension contribution instead of paying it to you. With this method you do not pay tax or NI on that amount, the company also save on NI payments. If you were to receive the money and pay into a pension yourself you would have a reduced tax liability but would still pay NI, as would the employer, on that amount.

Nitram29

I had salary sacrifice under a previous employer then our company got sold over, the new company didn't do salary sacrifice and the pension contributions appeared in the providers transaction page as "Employee" and then Employer" contributions.

Last year they wised up and changed our pensions (with permission) to being calculated as salary sacrifice. Now on the contributions list with the same provider they just appear as employer contributions. Long story short, I think your contributions are salary sacrifice, they just appear as coming from the employer as its all calculated in your pre tax deductions.

I am also north of the wall and crossed the higher rate threshold a couple of years ago, as soon as Salary Sacrifice became available to me again I dropped down to below the higher rate. Theres a few guys I work with who can't get their head round it but personally I think it's daft not to if you can afford the drop in your take home pay.

Dark_Sunday

I hope the SNP continue with their socialist agenda & increase taxes further in the coming years, thereby taxing success & taxing normal families who are just getting by with mortgages & kids, etc. Why ?? 2 main reasons : 1. I'll increase sal sac contributions further 2. They'll not be in power at the next Scottish elections.