Well, you don't necessarily have to disallow it as such, you could do something like limiting the level of employer's NI-free contributions to the employee's pension....say to 10% of the employee's salary, or a fixed amount, such as say £4000 (or a fixed percentage of the Annual Allowance).....
You could also do something similar for employee contributions.....but my guess is that you probably wouldn't have to.......
I'm sure there are other alternatives too, to limit salary sacrifice NI avoidance....it doesn't necessarily have to be gone in one fell swoop either, you could slowly squeeze it out, which might be a preferable option anyway.....
That must surely be for the chop in the next few years.
Surely, socialist children would donate their inheritance from their parents to the Revenue & Customs just as socialist parents would never have their children privately educated.
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I can't see them reducing the lifetime allowance. Not after they raised it a bit recently.
I bet they will go after the annual allowance.
Probably they will reduce the level at which the taper kicks in. I wouldn't be surprised to see that go down quite a bit £125k or maybe even £100k. They might also reduce the annual allowance from £40k to maybe £35k or even £30k.
I can't see them introducing a flat rate of tax relief. Both of the above will be quicker to implement and probably they will get fewer issues getting it passed.
They might also reduce the annual allowance from £40k to maybe £35k or even £30k.
The £40k limit was set at 6th April 2014.
With inflation running at recent levels. AA should be around £43,400 next tax tax year. Inflation is a chancellors stealth tax. Doing nothing has a positive impact for the Treasury.
Likewise QE is having a positive effect on portfolio values resulting in an increased tax take.
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
Question, if the annual allowance is reduced how would this affect payers tax when a DC scheme. As an example my company pay 53% contributions for DC members. If the AA drops, who would pay the extra tax? Company or employee?
Question, if the annual allowance is reduced how would this affect payers tax when a DC scheme. As an example my company pay 53% contributions for DC members. If the AA drops, who would pay the extra tax? Company or employee?
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
Isn't "scheme pays" also an option? [STRIKE]If it is, that would usually be the better choice as it somewhat ameliorates the double-tax that can occur when the pension is finally drawn.[/STRIKE]
ETA: Correction: same double-tax outcome in both cases.
Replies
https://www.gov.uk/government/publications/income-tax-limitation-of-salary-sacrifice/income-tax-limitation-of-salary-sacrifice
You could also do something similar for employee contributions.....but my guess is that you probably wouldn't have to.......
I'm sure there are other alternatives too, to limit salary sacrifice NI avoidance....it doesn't necessarily have to be gone in one fell swoop either, you could slowly squeeze it out, which might be a preferable option anyway.....
Surely, socialist children would donate their inheritance from their parents to the Revenue & Customs just as socialist parents would never have their children privately educated.
I bet they will go after the annual allowance.
Probably they will reduce the level at which the taper kicks in. I wouldn't be surprised to see that go down quite a bit £125k or maybe even £100k. They might also reduce the annual allowance from £40k to maybe £35k or even £30k.
I can't see them introducing a flat rate of tax relief. Both of the above will be quicker to implement and probably they will get fewer issues getting it passed.
The £40k limit was set at 6th April 2014.
With inflation running at recent levels. AA should be around £43,400 next tax tax year. Inflation is a chancellors stealth tax. Doing nothing has a positive impact for the Treasury.
Likewise QE is having a positive effect on portfolio values resulting in an increased tax take.
Employee. It's a form of remuneration.
ETA: Correction: same double-tax outcome in both cases.
https://adviser.royallondon.com/news/pensions/2016/july/scheme-pays/