Give as you earn scheme

CaptainWales

Is it possible to use the Give as you earn scheme to reduce your salary below a certain tax band?

For example, if I just fall into the higher rate bracket, can I use Give as you earn so I fall back into being a basic rate taxpayer? Its unclear to me whether Give as you earn is akin to salary sacrifice.

singhini

i think so. GAYE can be used to reduce your taxable income below a tax band, similar to a salary sacrifice, but it only affects income tax, not NI.

But don't rely on me, im not 100%

(personally i don't pay any money to the Inland Revenue -----> i live by the seaside!)

Isthisforreal99

singhini said:

i think so. GAYE can be used to reduce your taxable income below a tax band, similar to a salary sacrifice, but it only affects income tax, not NI.

But don't rely on me, im not 100%

(personally i don't pay any money to the Inland Revenue -----> i live by the seaside!)

Any of us would be hard pushed to pay anything to an organisation that hasn't existed since 2005

poseidon1

CaptainWales said:

Is it possible to use the Give as you earn scheme to reduce your salary below a certain tax band?

For example, if I just fall into the higher rate bracket, can I use Give as you earn so I fall back into being a basic rate taxpayer? Its unclear to me whether Give as you earn is akin to salary sacrifice.

This article explains -

https://www.litrg.org.uk/tax-nic/income-tax/payroll-giving#:~:text=If you pay tax through,you earn' or workplace giving.

sheramber

Isthisforreal99 said:

singhini said:

i think so. GAYE can be used to reduce your taxable income below a tax band, similar to a salary sacrifice, but it only affects income tax, not NI.

But don't rely on me, im not 100%

(personally i don't pay any money to the Inland Revenue -----> i live by the seaside!)

Any of us would be hard pushed to pay anything to an organisation that hasn't existed since 2005

Who says? 

singhini

sheramber said:

Isthisforreal99 said:

singhini said:

i think so. GAYE can be used to reduce your taxable income below a tax band, similar to a salary sacrifice, but it only affects income tax, not NI.

But don't rely on me, im not 100%

(personally i don't pay any money to the Inland Revenue -----> i live by the seaside!)

Any of us would be hard pushed to pay anything to an organisation that hasn't existed since 2005

Who says? 

isthisforreal99 may not have got the joke i was alluding to (a Ken Dodd joke)