Salary Sacrifice

BlackKnightMonty

New article in the Financial Times, they are pretty certain that Salary Sacrifice about to be taxed after the budget.

https://on.ft.com/48tIvS0UK Budget’s pensions tax raid to raise over £3bn

Marcon

Couldn't we just wait until Wednesday and find out for certain, instead of having yet more threads based on speculation?

HedgehogRulez

What's happening Wednesday?

westv

Does this really need a new thread?
And I would see any reduction as a retrograde step when pension contributions should be increased, not reduced.
It won't happen.

Cobbler_tone

I’d prefer if they took it off the contribution but they will probably apply the charge impacting on net pay. The same difference but many will have to reduce contributions due to the impact on net affordability.

flaneurs_lobster

HedgehogRulez said:

What's happening Wednesday?

World Olive Tree Day.

https://www.unesco.org/en/days/world-olive-tree

GunJack

Behind a paywall....

But, as @Cobbler_tone mentioned above, if may well lead to lower contributions due to affordability. I for one am just on the cusp of 40% tax with my current salary sacrifice level, any changes to the NI regime will mean some pretty hard sums to see what's actually best between tax, salsac and the NI charges.....got a feeling takehome pay is going to get a bit hammered ☹️

Cobbler_tone

GunJack said:

Behind a paywall....

But, as @Cobbler_tone mentioned above, if may well lead to lower contributions due to affordability. I for one am just on the cusp of 40% tax with my current salary sacrifice level, any changes to the NI regime will mean some pretty hard sums to see what's actually best between tax, salsac and the NI charges.....got a feeling takehome pay is going to get a bit hammered ☹️

I worked mine out as £175 net less take home per month. As I contribute to a rate which leaves me at just over £2k it won’t be affordable. First world problems but the impact on my employer would be far greater. If it’s April I will continue as I am (maybe up it a little more down to NMW) and then review, probably balancing to keep the same take home for my final few months. Personally I’d prefer it if they reduced the TFLS to £100k, which shows how we all have different situations.
The good thing is my contributions are very easy to change month by month.
Be interesting what my firm does with pay rises and their current 12% contribution.
It’s getting increasingly expensive to employ anyone!