Can you salary sacrifice from my pension pot

Just_retired

I take a monthly payment from my pension just like a salary and pay a higher rate of tax on that money just like a salary. Can I by a car on a salary sacrifice scheme to buy a car from my pension payment? - just like a salary?

dunstonh

If your employer allows it, then yes.  If they don't then no.

With EVs, it can be viable but with ICE vehicles it usually isn't.

Marcon

dunstonh said:

If your employer allows it, then yes.  If they don't then no.

With EVs, it can be viable but with ICE vehicles it usually isn't.

An employer can't allow salary sacrifice from a pension - the clue is in the name: salary sacrifice. There has to be a contractual reduction in salary entitlement, which could never apply to pension payments.

So in answer to OP's question: no.

Cobbler_tone

Just_retired said:

 Can I by a car on a salary sacrifice scheme to buy a car from my pension payment? 

Nice try 

I just wish my employer would let you lease/buy a car from our partners via 'salary' SS. I have asked more than once and the reply is always "It wouldn't be fair as not everyone could afford it". I always say that not everyone can afford private health care, company shares and 50% into the pension scheme etc, although they have allowed for basic cover for all, whilst remaining above NMW. Anyway, they always have an answer!! The truth is probably "too much admin". 
Not having much joy of getting a share of the employer NI savings, or full bonus sacrifice either. 
It's not much of a grumble and a good company.

dunstonh

Sorry, I misread it as salary to buy a car.

Marcon

Cobbler_tone said:

Just_retired said:

 Can I by a car on a salary sacrifice scheme to buy a car from my pension payment? 

Nice try 

I just wish my employer would let you lease/buy a car from our partners via 'salary' SS. I have asked more than once and the reply is always "It wouldn't be fair as not everyone could afford it". I always say that not everyone can afford private health care, company shares and 50% into the pension scheme etc, although they have allowed for basic cover for all, whilst remaining above NMW. Anyway, they always have an answer!! The truth is probably "too much admin". 

Given the number of posts on this board about SS and pensions, utter confusion often reigns.

Cars would still be taxed as a BIK if SS is used, so the saving (even for an electric vehicle) might not be as high as people hope.

Try to explain that to employees when pension salary sacrifice isn't assessed as a BIK... I'm not surprised employers shy away from it.

Cobbler_tone

Marcon said:

Cobbler_tone said:

Just_retired said:

 Can I by a car on a salary sacrifice scheme to buy a car from my pension payment? 

Nice try 

I just wish my employer would let you lease/buy a car from our partners via 'salary' SS. I have asked more than once and the reply is always "It wouldn't be fair as not everyone could afford it". I always say that not everyone can afford private health care, company shares and 50% into the pension scheme etc, although they have allowed for basic cover for all, whilst remaining above NMW. Anyway, they always have an answer!! The truth is probably "too much admin". 

Given the number of posts on this board about SS and pensions, utter confusion often reigns.

Cars would still be taxed as a BIK if SS is used, so the saving (even for an electric vehicle) might not be as high as people hope.

Try to explain that to employees when pension salary sacrifice isn't assessed as a BIK... I'm not surprised employers shy away from it.

We have a long awaited visit from central benefits coming and they asked for suggested topics. I recommended...suggesting that people actually access their pension portals, explain the difference between their DB and DC pension (many have no idea), explain the true cost of private healthcare (which many refuse to access as they don't understand what it costs) and how salary sacrifice works. There is also a free resource for the DB pension and Pension Wise for the DC, which are worth prompting.
That should take them most of the day and probably leave some none the wiser!
TBF the company have their work cut out as you can lead a horse to water but some people totally lack personal accountability....and then moan and work until their state pension age because they think that's what people have to do. I am sure that like many people, some are 100% laser focused on the maximum net pay today.