What changes for salary sacrifice?

pieroabcd

Hi,
I've read that from 2029 the salary sacrifice arrangement will change and that there will be no more NI relief.
Does it mean that for amounts above 2k per year both my employer and I have to consider the contributions to the workplace pension as if part of the gross salary without adding them to the taxable income for income tax?

Is there any calculator around?

Thanks

Isthisforreal99

It's more than 3 years away - why would there be a calculator now.

Plus numerous other threads on the subject.

Dazed_and_C0nfused

pieroabcd said:

Hi,
I've read that from 2029 the salary sacrifice arrangement will change and that there will be no more NI relief.
Does it mean that for amounts above 2k per year both my employer and I have to consider the contributions to the workplace pension as if part of the gross salary without adding them to the taxable income for income tax?

Is there any calculator around?

Thanks

Fake news.  There was no such announcement.

There will be a limit on how much NI people can avoid paying.  Assuming it actually happens.

BlackKnightMonty

Dazed_and_C0nfused said:

pieroabcd said:

Hi,
I've read that from 2029 the salary sacrifice arrangement will change and that there will be no more NI relief.
Does it mean that for amounts above 2k per year both my employer and I have to consider the contributions to the workplace pension as if part of the gross salary without adding them to the taxable income for income tax?

Is there any calculator around?

Thanks

Fake news.  There was no such announcement.

There will be a limit on how much NI people can avoid paying.  Assuming it actually happens.

Harsh way to describe the Chancellor’s budget where this policy was outlined !

Dazed_and_C0nfused

BlackKnightMonty said:

Dazed_and_C0nfused said:

pieroabcd said:

Hi,
I've read that from 2029 the salary sacrifice arrangement will change and that there will be no more NI relief.
Does it mean that for amounts above 2k per year both my employer and I have to consider the contributions to the workplace pension as if part of the gross salary without adding them to the taxable income for income tax?

Is there any calculator around?

Thanks

Fake news.  There was no such announcement.

There will be a limit on how much NI people can avoid paying.  Assuming it actually happens.

Harsh way to describe the Chancellor’s budget where this policy was outlined !

Where did she outline there would be no more NI relief?

Grumpy_chap

It is a change that limits the NI relief to the first £2k of SS pension only.
Tax relief unchanged.
Not effective until 2029.

BlackKnightMonty

Dazed_and_C0nfused said:

BlackKnightMonty said:

Dazed_and_C0nfused said:

pieroabcd said:

Hi,
I've read that from 2029 the salary sacrifice arrangement will change and that there will be no more NI relief.
Does it mean that for amounts above 2k per year both my employer and I have to consider the contributions to the workplace pension as if part of the gross salary without adding them to the taxable income for income tax?

Is there any calculator around?

Thanks

Fake news.  There was no such announcement.

There will be a limit on how much NI people can avoid paying.  Assuming it actually happens.

Harsh way to describe the Chancellor’s budget where this policy was outlined !

Where did she outline there would be no more NI relief?

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

Dazed_and_C0nfused

BlackKnightMonty said:

Dazed_and_C0nfused said:

BlackKnightMonty said:

Dazed_and_C0nfused said:

pieroabcd said:

Hi,
I've read that from 2029 the salary sacrifice arrangement will change and that there will be no more NI relief.
Does it mean that for amounts above 2k per year both my employer and I have to consider the contributions to the workplace pension as if part of the gross salary without adding them to the taxable income for income tax?

Is there any calculator around?

Thanks

Fake news.  There was no such announcement.

There will be a limit on how much NI people can avoid paying.  Assuming it actually happens.

Harsh way to describe the Chancellor’s budget where this policy was outlined !

Where did she outline there would be no more NI relief?

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

That says (some) NI relief is still available from April 2029 though.

Corrected to April 2029

BlackKnightMonty

Dazed_and_C0nfused said:

BlackKnightMonty said:

Dazed_and_C0nfused said:

BlackKnightMonty said:

Dazed_and_C0nfused said:

pieroabcd said:

Hi,
I've read that from 2029 the salary sacrifice arrangement will change and that there will be no more NI relief.
Does it mean that for amounts above 2k per year both my employer and I have to consider the contributions to the workplace pension as if part of the gross salary without adding them to the taxable income for income tax?

Is there any calculator around?

Thanks

Fake news.  There was no such announcement.

There will be a limit on how much NI people can avoid paying.  Assuming it actually happens.

Harsh way to describe the Chancellor’s budget where this policy was outlined !

Where did she outline there would be no more NI relief?

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

That says (some) NI relief is still available from April 2028 though.

£2k of relief.

as opposed to the current £60k of relief.

A 97% reduction in relief. 

artyboy

BlackKnightMonty said:

Dazed_and_C0nfused said:

BlackKnightMonty said:

Dazed_and_C0nfused said:

BlackKnightMonty said:

Dazed_and_C0nfused said:

pieroabcd said:

Hi,
I've read that from 2029 the salary sacrifice arrangement will change and that there will be no more NI relief.
Does it mean that for amounts above 2k per year both my employer and I have to consider the contributions to the workplace pension as if part of the gross salary without adding them to the taxable income for income tax?

Is there any calculator around?

Thanks

Fake news.  There was no such announcement.

There will be a limit on how much NI people can avoid paying.  Assuming it actually happens.

Harsh way to describe the Chancellor’s budget where this policy was outlined !

Where did she outline there would be no more NI relief?

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

That says (some) NI relief is still available from April 2028 though.

£2k of relief.

as opposed to the current £60k of relief.

A 97% reduction in relief. 

To put that into context though, if you're a higher/additional rate taxpayer, then it's only costing you 2% in lost NI relief.

If that was the case for me back in the days when I was shoving 40/60k in per year, especially with the employer top ups, I might have grumbled a bit but really it wouldn't have been something I'd have gone apoplectic about.

My bigger concern would be that my employer might scale back their matching contributions because they were getting funded from their own NI savings on what I was sacrificing. That's the real risk to salsac in future - at least the more 'generous' schemes.

Of course, if you're a BR taxpayer that is salsac'ing more than 2k, then you really get shafted with an extra 8% charge. Surprised no politician has picked up on that yet...

Cobbler_tone

Or the obvious sweet spot. Hammer it now and retire before 2029. Takes it out of the equation.
I know, that’s not helping.