Is this proper salary sacrifice?

moneymagic

Hello - I have signed up for a salary sacrifice arrangement from my employer - I sacrifice 10% of salary and my employer adds 5%.

My payslip is confusing me a little though - I expected to have 10% less salary rather than it be classed as a "deduction" (for reference, i earn just over 38K). The tax/NI all do seem to work out as a sal sac arrangement (and it does say sal sac on my payslip). I have asked HR to clarify and they just said that it is sal sac and thats just the way payslips are.

my issue is that I am hoping to get a large payrise over the coming months that would both (a) push me into 40% tax bracket and (b) start reducing some of my child benefit. I had hoped that using sal sac to keep me under 50k would remove those issues. Do i continue to claim child benefit as normal or do I have to start providing payslips? This might confuse things if it is a sal sac arrangement but doesn't really look like it on the payslip or am I just overthinking things?

MX5huggy

You are fine. 

Do you have Year to date boxes on the pay slip as well? You might have Total Gross pay and Gross for Tax numbers. 

You definitely don’t have to provide payslips. Your P60 will show taxable pay this is important figure, the problem is this turns up after you can do anything about it. But this year you’ll be fine either way so you’ll see how it works out. 

NoMore

Your overthinking it, what are you expecting a Sal sac payslip to look like ? You do have 10% less salary, (320.21 is 10% of 3202.07 rounded), they have to show you are having a deduction somehow.

You've confirmed the tax and NI are as expected with a Sal sac arrangement, HR have confirmed its a sal sac arrangement, the Payslip itself says its Sal Sac. I'm not sure what else you want.

moneymagic

MX5huggy said:

You are fine. 

Do you have Year to date boxes on the pay slip as well? You might have Total Gross pay and Gross for Tax numbers. 

You definitely don’t have to provide payslips. Your P60 will show taxable pay this is important figure, the problem is this turns up after you can do anything about it. But this year you’ll be fine either way so you’ll see how it works out. 

The year to date boxes on my payslip say "Gross Taxable" followed by "Taxable Gross" both with the same numbers. (Surely thats the same thing??) 

I assume thats the numbers that are important, so maybe go back to my april payslip (1st of the tax year for easy maths) and check the the gross taxable has the sacrificed amount removed?

moneymagic

NoMore said:

Your overthinking it, what are you expecting a Sal sac payslip to look like ? You do have 10% less salary, (320.21 is 10% of 3202.07 rounded), they have to show you are having a deduction somehow.

You've confirmed the tax and NI are as expected with a Sal sac arrangement, HR have confirmed its a sal sac arrangement, the Payslip itself says its Sal Sac. I'm not sure what else you want.

I am just comparing it to my husbands payslip who has his salary and another line for "sal sac adjusted salary" with the amount removed rather it coming off as a "deduction". I just wanted to clarify that it was correct.

NedS

moneymagic said:

NoMore said:

Your overthinking it, what are you expecting a Sal sac payslip to look like ? You do have 10% less salary, (320.21 is 10% of 3202.07 rounded), they have to show you are having a deduction somehow.

You've confirmed the tax and NI are as expected with a Sal sac arrangement, HR have confirmed its a sal sac arrangement, the Payslip itself says its Sal Sac. I'm not sure what else you want.

I am just comparing it to my husbands payslip who has his salary and another line for "sal sac adjusted salary" with the amount removed rather it coming off as a "deduction". I just wanted to clarify that it was correct.

It's correct, just a different way of representing it on the payslip.

The thing that tells you that it is correct is the reduction in NI. If it were not SalSac then the full NI would have been deducted (around £258.55/month) rather than the reduced amount of £220