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Salary Sacrifice to lower tax bracket?

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Comments

  • You don't ever need to tell HMRC about salary sacrifice pension contributions, primarily because you aren't contributing to the pension, you are agreeing to a lower salary in return for your employer contributing.

    As zagfles says you could update your estimated taxable pay figure (the amount you now expect to see on your P60).
  • cloud_dog
    cloud_dog Posts: 6,365 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    cloud_dog said:
    the benefit of 'lumpy' contributions
    I have a follow-up question on implementing this new strategy.

    How should I proceed with regards to the HMRC?
    It seems that I should inform them now that I will be increasing my salary sacrifice to reduce my annual pay, allowing them to adjust the tax code and recalc our entitlement to child benefit.
    Would that also require that I explain the intent to go with 'lumpy' contributions, or just advise of the end-of-year target?


    You can do it online via your personal tax account.  You can give them an estimate of your 'income' for 20/21, no explanation necessary.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • ByondDoubt
    ByondDoubt Posts: 12 Forumite
    Fourth Anniversary First Post
    Thank you all again for the advice and guidance.
    I have updated the value on the personal tax account, and informed pay roll of the intended change.

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