We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
LGPS - salary sacrifice AVC’s
Options

seans_elysees
Posts: 71 Forumite

I’ve been in LGPS for nearly 7 years now and have been adding separate AVCs to our SIPP partner for the past few years.
I have been aware that there’s a salary sacrifice option for the AVC’s that can save me on NIC contributions. I haven’t went down that path yet as I’ll prob have a mortgage change to come at some point.
However … trying to plan ahead …
My question is - would the NIC savings be taken from the rate at highest point in salary I assume?
I earn roughly £55k, so earnings tip into the 2% NIC rate.
0
Comments
-
SS reduces your salary so the NI saved would be from the salary you have sacrificed, so 2% first then 10%
0 -
ColdIron said:SS reduces your salary so the NI saved would be from the salary you have sacrificed, so 2% first then 10%
Thanks for confirming.0 -
It's also worth noting that some of the LGPS AVC salary sacrifice schemes add the employer NI saving to yours, so add an extra 13.8% benefit. Also with the LGPS you can take the whole AVC pot tax fee (up to set limits), if taken at the same time as the main pension, which is another additional benefit vs a stand alone product.
https://home.avcwise.co.uk/
https://www.lgpsmember.org/
0 -
seans_elysees said:ColdIron said:SS reduces your salary so the NI saved would be from the salary you have sacrificed, so 2% first then 10%
Thanks for confirming.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.7K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.5K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards