Changing amount of contributions

horace972897

Hi


My workplace runs a "flexible benefit" scheme where once per year you can change the benefits you want to take. So you can buy/sell holidays, add Private medical insurance etc. One of the things you choose is the level of pension you want to invest via salary sacrifice.
They state that you can only make changes to this once a year unless some very specific things happen so you. Things such as drop in hours, partner redundancy, significant financial change etc etc. When questioned about this, as i'd like to increase my pension contributions, i was told i can't as my finanical change isn't in the list and it's HMRC rules that stop them doing this.


So after the long preamble - does anyone know anything about these HMRC rules (i have googled but have not found anything)?


Thanks in advance

MallyGirl

I can change my salary sacrifice amount every month (actually every day if I wanted - its online) so they are not being honest.

BoGoF

I suspect they are using this as an excuse. The real reason is probably increased admin costs and at the end of the day they can set the rules.

WannabeEdouard

I can change my contributions every month in my workplace . So i doubt it's HMRC rules maybe more the admin for your workplace.

cloud_dog

I'm not aware of any HMRC rules or guidelines. I have changed my SS pension contribution a few times over the recent past, indeed I have just increased it in time for the February payroll run.

There is a local administration overhead for the company in making the changes so, they may feel it is not unreasonable for them to implement some sort of structure to when they can expect changes to be requested (once a year). We have a similar set up regarding the other benefits and I can only make changes during November each year.

swindiff

As MallyGirl, I can make a change once ever 24 hours with my SS pension. So as far as I can tell using HMRC as an excuse as to why they are limiting it so much.

JoeCrystal

horace972897 wrote: »

So after the long preamble - does anyone know anything about these HMRC rules (i have googled but have not found anything)?

There was a thread a few months ago talking about salary sacrifice in this forum, and the gist of that thread was that due to the introduction of auto-enrolment. To enable the people to opt-out, the lifestyle changes are relaxed in this case but I may be misremembering it.

Jerben

I was once a member of a similar scheme to that described by the OP.
Yes, there was one defined date a year for changes to be implemented. (There was also a list of 'special' events which might permit a change).
I'm sure these rules were the company rules and were simply to minimize admin and allocate, (and limit), HR resources.
When is your specified 'once a year' date?
Would it make a big difference if you waited till then?

horace972897

Thanks for all your replies.
The next window is December - i wanted to change from putting in my SIPP to salary sacrifice to save the NI, so wanted to change in March for April payroll. Didn't want to do last December as that would mean dealing with HMRC to change my tax code and that was a PITA last time (though poss easier now you can do it via your personal tax account)



So it's a reasonable cost saving i'll lose till December, not the end of the world though..... 1st world problems and all that. I'll try the financial circumstances have changed approach but i'm not divorcing the Mrs to get it


Thanks again for your time/replies

Clive_Woody

My company is pretty rigid on SS contributions into my pension up to 7% from me and 10% from them, which can be reviewed twice a year, but we have the options of making SS AVCs, which they top up with 13.8% NI equivalent saving. I can vary the AVC month by month - might this be an option if you want to increase pension contributions?

Alternatively could you open a SIPP or similar and make additional payments there and claim the tax relief.

232607

I can change them whenever I like.
They’re trying to pull the wool over your eyes.

Would be better if they were honest & said it’s to keep admin costs down.