We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Is your Personal Savings Allowance adjusted with Salary Sacrifice
I was previously a basic rate tax payer and had of PSA of £1000 and would accrue interest greater than £1000 (outside ISA's) and be eligible for additional taxes. My salary increased to the 40% tax rate so my PSA is now £500. If I salary sacrifice into company pension to get gross pay below higher tax rate, is my PSA adjusted?
Comments
-
Yes. Sal sac reduces your salary so if that takes your total taxable income below the higher tax bracket you retain the £1K allowance, the interest though could drag you back into 40% tax and the reduced allowance.
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards