POLL - Should NI avoidance on pension contributions, via Salary Sacrifice, be stopped

westv

Should be left alone

Baldytyke88 said:

MK62 said:

I suppose another point of interest would be whether those voting for "Should be left alone" are using salary sacrifice for their pension contributions (given that few people vote to make themselves worse off).......and whether those voting for "Should be stopped" are in the opposite camp.......

But are most of those who benefit from SS earning more than £20k?

I have £37k in a SIPP all put in over the last 10 years, if I could SS I would do so. SS is just a way of avoiding tax, so it's unfair for those who cannot do it.

What is the point of a tax rate if you allow people to avoid it?

Pension saving is a way of avoiding tax
ISAs are way of avoiding tax
Personal allowances avoid tax.

Roger175

Should be stopped

westv said:

Roger175 said:

Baldytyke88 said:

But are most of those who benefit from SS earning more than £20k?

I have £37k in a SIPP all put in over the last 10 years, if I could SS I would do so. SS is just a way of avoiding tax, so it's unfair for those who cannot do it.

What is the point of a tax rate if you allow people to avoid it?

Totally nailed it! I have never had the opportunity to SS one penny of my SIPP contributions - the whole concept is totally random and unjust. Either the country (UK PLC) needs tax revenue or it doesn't. SS is just legal tax evasion.

Ah, so your employer doesnt/didn't bother to offer it so you think nobody else should have it?

No, self employed (now retired). No chance of SS. I wouldn't have such an issue with it of it wasn't just a total lottery.

FIREDreamer

Should be left alone

Roger175 said:

westv said:

Roger175 said:

Baldytyke88 said:

But are most of those who benefit from SS earning more than £20k?

I have £37k in a SIPP all put in over the last 10 years, if I could SS I would do so. SS is just a way of avoiding tax, so it's unfair for those who cannot do it.

What is the point of a tax rate if you allow people to avoid it?

Totally nailed it! I have never had the opportunity to SS one penny of my SIPP contributions - the whole concept is totally random and unjust. Either the country (UK PLC) needs tax revenue or it doesn't. SS is just legal tax evasion.

Ah, so your employer doesnt/didn't bother to offer it so you think nobody else should have it?

No, self employed (now retired). No chance of SS. I wouldn't have such an issue with it of it wasn't just a total lottery.

Paying much lower NI than PAYE employees - that should be equalised?

(ex PAYE, now retired)

molerat

Class 2 now serves no purpose.  Class 3 should be the only voluntary option.

Roger175

Should be stopped

FIREDreamer said:

Roger175 said:

westv said:

Roger175 said:

Baldytyke88 said:

But are most of those who benefit from SS earning more than £20k?

I have £37k in a SIPP all put in over the last 10 years, if I could SS I would do so. SS is just a way of avoiding tax, so it's unfair for those who cannot do it.

What is the point of a tax rate if you allow people to avoid it?

Totally nailed it! I have never had the opportunity to SS one penny of my SIPP contributions - the whole concept is totally random and unjust. Either the country (UK PLC) needs tax revenue or it doesn't. SS is just legal tax evasion.

Ah, so your employer doesnt/didn't bother to offer it so you think nobody else should have it?

No, self employed (now retired). No chance of SS. I wouldn't have such an issue with it of it wasn't just a total lottery.

Paying much lower NI than PAYE employees - that should be equalised?

(ex PAYE, now retired)

  Touché  Not 0% though is it!. I still think it is totally random and fundamentally unjust. As I say HMRC needs the revenue.

michaels

So easy, all remuneration should be declared as earnings whether it is paid as salary or pension and therefore subject to NI.  That obviously also includes employer DB pension contributions.

This obviously broadens the NI base so the rate should be reduced to keep the tax take the same.

Grumpy_chap

Roger175 said:

FIREDreamer said:

Roger175 said:

westv said:

Roger175 said:

Baldytyke88 said:

But are most of those who benefit from SS earning more than £20k?

I have £37k in a SIPP all put in over the last 10 years, if I could SS I would do so. SS is just a way of avoiding tax, so it's unfair for those who cannot do it.

What is the point of a tax rate if you allow people to avoid it?

Totally nailed it! I have never had the opportunity to SS one penny of my SIPP contributions - the whole concept is totally random and unjust. Either the country (UK PLC) needs tax revenue or it doesn't. SS is just legal tax evasion.

Ah, so your employer doesnt/didn't bother to offer it so you think nobody else should have it?

No, self employed (now retired). No chance of SS. I wouldn't have such an issue with it of it wasn't just a total lottery.

Paying much lower NI than PAYE employees - that should be equalised?

(ex PAYE, now retired)

  Touché  Not 0% though is it!. I still think it is totally random and fundamentally unjust. As I say HMRC needs the revenue.

Ah, yes, so presumably you'd also agree that those with unearned income and those of all ages should pay NI?  After all, HMRC needs the revenue...

Hoenir

michaels said:

So easy, all remuneration should be declared as earnings whether it is paid as salary or pension and therefore subject to NI.  That obviously also includes employer DB pension contributions.

This obviously broadens the NI base so the rate should be reduced to keep the tax take the same.

Remuneration can take many forms. Not just salary or pension. 

Baldytyke88

westv said:

Ah, so your employer doesnt/didn't bother to offer it so you think nobody else should have it?

Paying in more to my pension would involve APC/AVC, I decided on a SIPP instead. Understanding the choices is complex. The amount of pension advice I have had from my employer is zero.

It's an important part of our remuneration, yet the workers earning low levels of pay get zero help. Perhaps other employers are different?

michaels

Hoenir said:

michaels said:

So easy, all remuneration should be declared as earnings whether it is paid as salary or pension and therefore subject to NI.  That obviously also includes employer DB pension contributions.

This obviously broadens the NI base so the rate should be reduced to keep the tax take the same.

Remuneration can take many forms. Not just salary or pension. 

Shouldn't they all be taxed the same whatever the form?!  Pensions already have enough advantage with the TFLS and the deferment of taxation.