Salary sacrifice limit

Nomunnofun1

CaptainWales said:

Isthisforreal99 said:

CaptainWales said:

But how would HMRC find out? I would not report them as I had chosen the amount of salary to be sacrificed

So, you want your employer to break the law for you?

Not at all (and I imagine their systems would prevent it from happening). I am thinking practically how this would ever come to light?

At the next random (or otherwise) employers inspection by HMRC, if they still do them! 

And they are not fun!

Cobbler_tone

CaptainWales said:

Cobbler_tone said:

If you have a decent employer ask them what your max contribution is. Mine emailed me back within the hour with a spreadsheet showing holiday purchase, share purchase, private healthcare and a remaining limit of 54.6% for pension contributions. They should be all over it to stay on the right side of the law.

I asked them but all they said is that i can sacrifice any amount so long as it doesnt take me below NWD.

They are responsible for keeping your wages above NMW via SS, so technically should pay you the difference if your wages drop below this due to pension contributions. I'd imagine they will soon be in touch. It happened at my place and within a month numerous people got informed that they needed to reduce their contributions. Maybe your employer hasn't had to tackle this so far.
Mine pays well above NMW to ensure it allows all employees to access benefits such as 6% pension contributions, private healthcare and the share scheme. Last year this involved some getting pay rises of 15%+.

It depends what company you work for but they should be paying you the age appropriate NMW.

CaptainWales

Cobbler_tone said:

CaptainWales said:

Cobbler_tone said:

If you have a decent employer ask them what your max contribution is. Mine emailed me back within the hour with a spreadsheet showing holiday purchase, share purchase, private healthcare and a remaining limit of 54.6% for pension contributions. They should be all over it to stay on the right side of the law.

I asked them but all they said is that i can sacrifice any amount so long as it doesnt take me below NWD.

They are responsible for keeping your wages above NMW via SS, so technically should pay you the difference if your wages drop below this due to pension contributions. I'd imagine they will soon be in touch. It happened at my place and within a month numerous people got informed that they needed to reduce their contributions. Maybe your employer hasn't had to tackle this so far.
Mine pays well above NMW to ensure it allows all employees to access benefits such as 6% pension contributions, private healthcare and the share scheme. Last year this involved some getting pay rises of 15%+.

It depends what company you work for but they should be paying you the age appropriate NMW.

Thank you, very helpful.