Just upped SS contributions, question!

Nevergonnaretire

leosayer said:

jamesd said:

Yes, if salary sacrifice takes you into the basic rate range you do get the £1,000 interest allowance.

It's also worth knowing that salary sacrifice for higher rate tax payers works best if you concentrate it into as many months at minimum wage as are required to reach your target for the year. This is because NI is calculated for each pay period, not annually. It means that a large chunk of your sacrifice will get 12% NI saving instead of 2%.

Hopefully your employer will let you change mid year between high and low to benefit from this. Mine did.

If you log in to the HMRC site they will tell you the pay your employer reports each month and which they use to calculate your tax code. You can also tell them what you expect for the year, handy if varying sacrifice means early months are misleading.

Agreed and this is what I do to bring my taxable income down to around £50k ie. sacrifice around 75% of my salary for a few months and then back to normal 3% for the remaining months to continue to receive matched contributions.

To the OP, assuming your employer allows it then could sacrifice a higher amount for the remaining months of this tax year but you can't do 100% because that would take your earnings below minimum wage - your HR should be able to advise the maximum you can contribute.

Thanks and yes I was aware of the limits you're allowed to sacrifice. I wasn't aware of the benefit of condensing higher sacrifice payments in fewer months though so that's very interesting. Unfortunately I'm not run a position to do that at the moment or I certainly would...