Sal Sac or Net Contribution.

Sarahspangles

sevenhills said:

MX5huggy said:

National Minimum Wage is £11.44 are you not being paid much above this? 

NMW was £6.50 in 2014 for comparison. 

I am wanting to use SS in my final year or two, but I get around £13+ an hour, so this could be an obstacle.

But I do see refusing low-paid earners excess to SS to be unfair, we know that I receive above the NMW as do my colleagues.

I read about workers getting cars etc on SS, is all this legal, tax avoidance?

It’s more that employers are motivated by prosecution-avoidance for not paying NMW

gravel_2

sevenhills said:

MX5huggy said:

National Minimum Wage is £11.44 are you not being paid much above this? 

NMW was £6.50 in 2014 for comparison. 

I am wanting to use SS in my final year or two, but I get around £13+ an hour, so this could be an obstacle.

But I do see refusing low-paid earners excess to SS to be unfair, we know that I receive above the NMW as do my colleagues.

I read about workers getting cars etc on SS, is all this legal, tax avoidance?

All tax avoidance is legal. Tax evasion is what you're not allowed to do.

Marcon

sevenhills said:

MX5huggy said:

National Minimum Wage is £11.44 are you not being paid much above this? 

NMW was £6.50 in 2014 for comparison. 

I am wanting to use SS in my final year or two, but I get around £13+ an hour, so this could be an obstacle.

But I do see refusing low-paid earners excess to SS to be unfair, we know that I receive above the NMW as do my colleagues.

'Unfair' is not the same thing as 'unlawful' - there are plenty of things employees don't think are fair.

The difference here is that the employer would also benefit from allowing pension contributions to be made via salary  sacrifice, provided the employee has the necessary headroom to do so (ie it won't take them below minimum wage levels). Have you actually had a conversation with your employer to establish why you can't do it?

sevenhills said:

I read about workers getting cars etc on SS, is all this legal, tax avoidance?

Don't believe all you read. There are only certain benefits which can be paid by salary sacrifice (eg bicycle loan schemes) without an benefit in kind NI liability arising.

sevenhills

Marcon said:

Don't believe all you read. There are only certain benefits which can be paid by salary sacrifice (eg bicycle loan schemes) without an benefit in kind NI liability arising.

This is a quote from our private Facebook group - "It's through the NHS Fleet scheme. It's one of the better salary sacrifice schemes, but not a cheap way to get a car though."

We are local authority workers, so the NHS do it too. Some have said that it's not worth doing, because you don't get the dealership discounts.

Sarahspangles

sevenhills said:

Marcon said:

Don't believe all you read. There are only certain benefits which can be paid by salary sacrifice (eg bicycle loan schemes) without an benefit in kind NI liability arising.

This is a quote from our private Facebook group - "It's through the NHS Fleet scheme. It's one of the better salary sacrifice schemes, but not a cheap way to get a car though."

We are local authority workers, so the NHS do it too. Some have said that it's not worth doing, because you don't get the dealership discounts.

Plus it reduces your salary/pensionable pay which is very relevant now we’re in a CARE pension scheme

sevenhills

Sarahspangles said:

Plus it reduces your salary/pensionable pay which is very relevant now we’re in a CARE pension scheme

Do the private sector do SS?

Sarahspangles

sevenhills said:

Sarahspangles said:

Plus it reduces your salary/pensionable pay which is very relevant now we’re in a CARE pension scheme

Do the private sector do SS?

I assume so, like the Cycle to Work scheme for example. I’ve mostly worked in the public sector though, local authorities and the NHS. I got nursery vouchers through SS at one point - a long time ago! - and in that case SS slightly reduced my pension contributions but took me out of higher rate tax so was worthwhile.