Carers allowance and Salary Sacrifice

dallama85

I currently receive carers allowance and have the opportunity to increase my income but it wouldn't cover the loss of the benefit. I know I can claim childcare/pension contributions, but I can't see any information on how salary sacrifice would be implemented with carers allowance. 

From my understanding it wouldn't affect the benefit but would allow me to pay into a pension without having to reduce my monthly income, however, Im not certain and theres no guidance on it anywhere. Even the carers allowance team didn't know when I called them! 

Does anyone know how this would work?

p00hsticks

worth checking first if your employer actually offers salary sacrifice - not all do. 
Basically as I understand it salary sacrifice means that rather than you getting a rise in salary, your employer would retain the money but in return put it into your pension as an employer (rather than employee) contribution. 

dallama85

p00hsticks said:

worth checking first if your employer actually offers salary sacrifice - not all do. 
Basically as I understand it salary sacrifice means that rather than you getting a rise in salary, your employer would retain the money but in return put it into your pension as an employer (rather than employee) contribution. 

Yes they do, I just don't know if at year end when the accounts are filed if that employer contribution made in my name to a pension pot would retroactively be applied to my allowance as income. I don't think it would but I cant find any guidance anywhere on it!

Dazed_and_C0nfused

For tax purposes it's fairly simple.

Say your salary is £15,000 and you sacrifice 20% then your employer will add £3,000 to your pension (as an employer contribution so no tax relief is added to your pension) and your earnings, for tax purposes are just £12,000.

But how DWP would view this could be totally different when it comes to eligibility for a particular benefit.