Should I salary sacrifice?

QrizB · 21 February at 2:04PM

patrickyuis said:

in the A&B scenario I understand A but B, does that mean you cannot sacrifice more than 50%? because if you sacrifice 51% then your contribution would obviously be higher than your salary.

You can definitely sacrifice more than 50%, as it's then an employER contribution not an employEE one.

I'm currently sacrificing 70% of my salary. I might not be able to keep that up until I retire, depending on exactly when that is, but for the time being it works for me!

Marcon · 21 February at 9:08PM

ali_bear said:

patrickyuis said:

I thought you could sacrifice as much as you want as long as it doesnt exceed £60k a year or that it doesnt bring your total income for that year to below the national living wage, which is like £22k? (not 100% sure on that)

just thought I w
ould check with you incase at some point I would like to do more than 50%. Thanks

Yes that is correct. You can also carry forward that MPAA from 3 previous years.

No. Once you've triggered the MPAA, you can't use carry forward (unless you are actively building up benefits in a DB scheme - the MPAA doesn't impact on DB schemes), either for personal or employer contributions.

MX5huggy · 21 February at 10:51PM

As you have 1 child if you Salary sacrifice below £60k you won’t have to pay the High Income Child Benefit Charge that will get you £1330 of extra in your pocket per year (presuming your partner doesn’t pay it either).