£2000 NI relief cap on pension salary sacrifice from April 2029 (confirmed)

eskbanker

Cobbler_tone said:

Anyway, not expecting any other surprises, so guesses on the FTSE at close tomorrow?
-1.7%

Pretty positive reaction so far!

SnowMan

Salary sacrifice document 

https://www.gov.uk/government/publications/changes-to-salary-sacrifice-for-pensions-from-april-2029

artyboy

SnowMan said:

Salary sacrifice document 

https://www.gov.uk/government/publications/changes-to-salary-sacrifice-for-pensions-from-april-2029

So full employer NICs on sacrificed amounts above £2k then. But not on anything additional that the employer is 'truly' contributing themselves.

Definitely going to be some scheme closures and less generous matching in future...

BlackKnightMonty

Highest % of tax to GDP ever!

Cobbler_tone

eskbanker said:

Cobbler_tone said:

Anyway, not expecting any other surprises, so guesses on the FTSE at close tomorrow?
-1.7%

Pretty positive reaction so far!

I was waiting to declare my new chosen FA at the end of the day. Just shows how the markets move in funny ways.
It’s a long game.

Cobbler_tone

artyboy said:

SnowMan said:

Salary sacrifice document 

https://www.gov.uk/government/publications/changes-to-salary-sacrifice-for-pensions-from-april-2029

So full employer NICs on sacrificed amounts above £2k then. But not on anything additional that the employer is 'truly' contributing themselves.

Definitely going to be some scheme closures and less generous matching in future...

Huge caveat of 3.5 years to u-turn on that one.

artyboy

Cobbler_tone said:

artyboy said:

SnowMan said:

Salary sacrifice document 

https://www.gov.uk/government/publications/changes-to-salary-sacrifice-for-pensions-from-april-2029

So full employer NICs on sacrificed amounts above £2k then. But not on anything additional that the employer is 'truly' contributing themselves.

Definitely going to be some scheme closures and less generous matching in future...

Huge caveat of 3.5 years to u-turn on that one.

At some point, someone will make the argument that the lower earners will end up paying 4 times as much NI (i.e. 8%) than those 'rich bankers' that she said she wanted to target in her speech... (who will only be on the 2% rate)

SVaz

Cue Twitter full of people shreiking that Salary sacrifice has been cut to £2k a year.
So far, so predictable 🙄
Even Martin has had to clarify what he wrote.  

hugheskevi

HouseMartin567 said:

Does this NI cap for salary sacrifice have any effect on Added Pension contributions or Additional Voluntary Contributions within the CS?

No. Civil Service does not use salary sacrifice.

Grumpy_chap

Well, the cap will be maximum of £2k SS contributions into pension (not sure if other SS schemes are also affected).  Standard "employer contributions" are not impacted.  All from April 2029, which may quite possibly be after the next General Election.