Torygraph suggesting salary sacrifice to go

Albermarle

kimwp said:

artyboy said:

MK62 said:

When you look at who are the biggest beneficaries of salary sacrifice,  (and higher rate tax relief), and the cost relative to benefit, then it would be surprising if they weren't on the radar for any government looking to reduce the budget deficit and the national debt. That doesn't necessarily mean they will act to reduce or remove them though.......any responsible government should be constantly looking at and reviewing such schemes.

Well as a HR taxpayer, salsac only saved me 2% NI, so (at least from an employee perspective), the larger benefit is actually to BR taxpayers...

Does it not save you tax as well? 

Salary sacrifice is just one method ( of three)  for employees to make pension contributions, depending on which one the employer uses.
For all three methods you get exactly the same amount of tax relief, just by different routes.

sheramber

Cobbler_tone said:

I wouldn't worry. The basic rate tax band is also being raised to £20,000 (or £25,000 for married couples), along with the increased incentive to have loads of kids to look after us into old age.
It's not surprising but people do read these articles and pass them off as fact. Surely we have learnt that those without power will say just about anything in an attempt to get power, followed with "there is no magic wand".

Whoever tinkers with tax relief from pensions (exc potentially company NI savings as most won't pass them on) wouldn't be very popular.

I don’t  think popularity with the pensioners and the farmers and the employers influenced decisions already made. 
 

Gary1984

Albermarle said:

kimwp said:

artyboy said:

MK62 said:

When you look at who are the biggest beneficaries of salary sacrifice,  (and higher rate tax relief), and the cost relative to benefit, then it would be surprising if they weren't on the radar for any government looking to reduce the budget deficit and the national debt. That doesn't necessarily mean they will act to reduce or remove them though.......any responsible government should be constantly looking at and reviewing such schemes.

Well as a HR taxpayer, salsac only saved me 2% NI, so (at least from an employee perspective), the larger benefit is actually to BR taxpayers...

Does it not save you tax as well? 

Salary sacrifice is just one method ( of three)  for employees to make pension contributions, depending on which one the employer uses.
For all three methods you get exactly the same amount of tax relief, just by different routes.

But only salary sacrifice gives NI relief.

I think it's hard to legislate for though. What's to stop me reaching an agreement with my employer where they reduce my salary by £5k but increase my pension contributions by the same amount. It's not a salary sacrifice scheme but the end result is the same.

BridgetTheCat

michaels said:

Suggestion seems to be any contributions over the legal minimum (5%+3%) will be subject to at a minimum employee and employer NI and possibly also income tax.

No doubt the 30% odd notional employer contributions to public sector pensions will not be seen in the same light.

We voted for this government.

Did the headline call it a ‘tax raid’ by any chance?

They run this kind of headline at least once a week 🙄 It always turns out to be either completely untrue, grossly misleading or out of date.

Hoenir

Cobbler_tone said:

Hoenir said:

Cobbler_tone said:

Whoever tinkers with tax relief from pensions (exc potentially company NI savings as most won't pass them on) wouldn't be very popular.

Doing the right thing has nothing to do with popularity. Sometimes it's neccessary to make tough choices. 

OK Rach 

The word "neccessary" (sic) is entirely subjective. Was scrapping the winter fuel allowance the 'right thing'? It doesn't appear so as they slowly turn that boat around. 

You're right though. Whether it is increasing the basic rate tax limit to £20k at the expense of something else (I read that could cost £90b), tinkering with IHT, bouncing NI up and down, making the super rich pay even more tax, giving out/cutting certain benefits etc...it will never be universally popular. There will always be a group who are negatively impacted.
The best post on here recently was pointing out not to worry or complain about things that you have no control over. I've lived by that mantra for years and it's pretty liberating.    

There's a ticking debt time bomb. Doesn't matter who is in power.  Creating wealth is more than just selling an asset to another party at an ever inflated price. 

Cobbler_tone

Hoenir said:

Cobbler_tone said:

Hoenir said:

Cobbler_tone said:

Whoever tinkers with tax relief from pensions (exc potentially company NI savings as most won't pass them on) wouldn't be very popular.

Doing the right thing has nothing to do with popularity. Sometimes it's neccessary to make tough choices. 

OK Rach 

The word "neccessary" (sic) is entirely subjective. Was scrapping the winter fuel allowance the 'right thing'? It doesn't appear so as they slowly turn that boat around. 

You're right though. Whether it is increasing the basic rate tax limit to £20k at the expense of something else (I read that could cost £90b), tinkering with IHT, bouncing NI up and down, making the super rich pay even more tax, giving out/cutting certain benefits etc...it will never be universally popular. There will always be a group who are negatively impacted.
The best post on here recently was pointing out not to worry or complain about things that you have no control over. I've lived by that mantra for years and it's pretty liberating.    

Doesn't matter who is in power.  

100% I'd imagine that penny dropped for most many moons ago. 

Aylesbury_Duck

The Telegraph isn't a serious paper any more, almost everything they publish can be ignored.  Or enjoyed because of the sheer ridiculousness of it.

The recent story they published was utterly ridiculous, and they had to pull it when it became obvious it was fake.  However, given many other similar tales of "Woe is me, how can I keep every penny of my massive wealth?" they've recently published, it wasn't immediately obvious it was fake.  They're no better than the Mail.

https://www.thepoke.com/2025/05/27/telegraph-sob-story-about-family-having-to-cut-holidays-to-pay-school-fees-fake/

penners324

Not just in the Telegraph. Being reported in various places.

Sounds like fishing expedition by the government to see what response it'll get.

Report

hugheskevi

penners324 said:

Not just in the Telegraph. Being reported in various places.

Sounds like fishing expedition by the government to see what response it'll get.

It is longstanding policy that all funded research reports must be published, just as HMRC's salary sacrifice research has been published. 

Most research doesn't get reported on as it is dull and not of interest outside of specific areas of industry, but when a report is of wider interest like this it is likely to get interest.

Departmental Press Offices can promote a story, and the timing of release is within their control too. Publishing a research report during recess and the school holidays would tend to indicate HMRC doesn't have much interest in generating a big story around it.

surreysaver

kimwp said:

artyboy said:

MK62 said:

When you look at who are the biggest beneficaries of salary sacrifice,  (and higher rate tax relief), and the cost relative to benefit, then it would be surprising if they weren't on the radar for any government looking to reduce the budget deficit and the national debt. That doesn't necessarily mean they will act to reduce or remove them though.......any responsible government should be constantly looking at and reviewing such schemes.

Well as a HR taxpayer, salsac only saved me 2% NI, so (at least from an employee perspective), the larger benefit is actually to BR taxpayers...

Does it not save you tax as well? 

kimwp said:

artyboy said:

MK62 said:

When you look at who are the biggest beneficaries of salary sacrifice,  (and higher rate tax relief), and the cost relative to benefit, then it would be surprising if they weren't on the radar for any government looking to reduce the budget deficit and the national debt. That doesn't necessarily mean they will act to reduce or remove them though.......any responsible government should be constantly looking at and reviewing such schemes.

Well as a HR taxpayer, salsac only saved me 2% NI, so (at least from an employee perspective), the larger benefit is actually to BR taxpayers...

Does it not save you tax as well? 

It saves tax regardless of whether you use salary sacrifice or not. With salary sacrifice, the savings are with NI