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Parent contribution to student fees

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JntS
JntS Posts: 4 Newbie
First Post
edited 14 April 2023 at 5:03PM in Student MoneySaving
Hello, I’m looking for advice please - my son may go to uni sept ‘26. I’m looking at a car lease scheme through work where I’d pay through salary sacrifice. When I submit my salary details for parent contribution to student loans etc will I use my gross salary before or after the car lease payment ? Thanks in advance 

Comments

  • kaMelo
    kaMelo Posts: 2,857 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    After.
    The household income you declare for SFE is "household taxable income"  Leasing a car using salary sacrifice reduces your taxable income 

    (P.S. it also reduces your pension entitlement if you are in a CARE type defined benefit pension, but that's a different story)
  • JntS
    JntS Posts: 4 Newbie
    First Post
    kaMelo said:
    After.
    The household income you declare for SFE is "household taxable income"  Leasing a car using salary sacrifice reduces your taxable income 

    (P.S. it also reduces your pension entitlement if you are in a CARE type defined benefit pension, but that's a different story)
    Thank you, ..yes I need to look at effect on pension next I think 
  • kaMelo
    kaMelo Posts: 2,857 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    JntS said:
    kaMelo said:
    After.
    The household income you declare for SFE is "household taxable income"  Leasing a car using salary sacrifice reduces your taxable income 

    (P.S. it also reduces your pension entitlement if you are in a CARE type defined benefit pension, but that's a different story)
    Thank you, ..yes I need to look at effect on pension next I think 
    If it's a CARE type defined benefit pension then it's pretty straightforward, although the accrual rate may differ depending upon the scheme the method is the same.
    Take NHS for example.
    (Without salary sacrifice) Pensionable pay of £40,000 using 1/54th accrual = £740.74 pension entitlement for 1 year
    (Salary sacrifice £300 p/m) Pensionable pay of £36,400 using 1/54th accrual = £674.07 pension entitlement for 1 year.

    If it's a defined contribution type pension scheme, ignore everything I've written.
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