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

molerat

molerat said:

LHW99 said:

Andy_L said:

Cobbler_tone said:

BlackKnightMonty said:

I did hear today that premium car brands (audi, bmw, mercedes etc) will no longer be available on motability.

it’s a start.

Good shout that. I often wondered why they can't do a deal with Dacia or someone for mobility vehicles, as opposed to choosing from a full range. That could save a packet.

It wouldn't though. People using Motability who are choosing a premium car are paying the extra cost out of their own pocket. So if you limit what cars can be leased, we would still be paying out the same amount in PIP benefits.

I had understood that PIP was to help with things that were difficult for you to do due to sickness, disability etc. If it can be used to allow for paying for a higher spec car (as opposed to paying for suitable adaptations), I wonder if it should be means tested.

An argument is often made that the elderly should be prepared to pay for their own care, handing over attendance allowance, income and capital until reduced to a minimum level, but it appears capital and earned income are not taken into account for PIP

It is so PIP pays for the basic range car.  Anything outside that range has to be topped up by the user.  Restricting the type of car will have no effect on the cost to DWP.  Means testing of benefits is a whole different subject that is outside the allowed discussions here.

It seems the measures are a lot wider ranging than just "no luxury cars".  Motability is losing quite a few of its tax breaks

2.76 The Motability Scheme supports the independence of disabled people. However, it benefits from generous tax breaks which are subsidising provision beyond the scheme’s core objectives, such as the lease of luxury cars.
2.77 The government will limit the tax breaks available to Motability, and other qualifying schemes, saving over £1 billion over the next five years. VAT relief for top-up payments made to lease more expensive vehicles will be removed for new leases from July 2026, and Insurance Premium Tax will apply at the standard rate to insurance contracts on the Scheme. The VAT reliefs on weekly lease costs and vehicle resale will remain in place, and the tax changes will not apply to vehicles designed for, or substantially and permanently adapted for, wheelchair or stretcher users. These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments. Disability benefit payments and their eligibility will remain unaffected by these changes.
2.78 Alongside these changes, Motability Operations will better focus their scheme on achieving its core aims. Motability will remove luxury vehicles from the scheme, discontinue the inclusion of overseas breakdown cover and reduce their lease mileage limit. This will bring Motability leases more in line with those available commercially to most people

MeteredOut

jimjames said:

HedgehogRulez said:

so if you had £150k taxable income you could still contribute £100k by SS (assuming you had sufficient carry forward) and enjoy full NI relief of 2% x £100k = £2k?

Not as I read it. It's not £2k NI saving but £2k total that can be salary sacrificed

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

That's how I read it too. No NI on the first £2K of salary sacrificed into a pension each year, then NI payable on the rest.

Nothing about how this will work if someone has two employments and wants to sacrifice £2K+ across both.

Good news is they'll let us know

"Further guidance will be published on GOV.UK before April 2029."