Salary Sacrifice and effects on Tax Credits

bigturnip

If I earn say £10,000 in a tax year and decide to sacrifice £2,000 into a company pension, would my tax credits be based on my salary of £8,000 or my notional salary of £10,000?

If it's my salary after sacrifice is there anywhere I can find out the limits or formulas they use to calculate tax credits? Then I can work out the optimum amount of salary to sacrifice.

I know they have the eligibility calculator, but I just want to know how it's calculated, so I don't have to sit there and enter every possible scenario.

bigturnip

I have found the answer on the hmrc website:

Q. I have a salary sacrifice in place but not for childcare vouchers, can I deduct this amount from my annual salary/pay?

A. No, the only type of salary sacrifice that can be deducted from your annual salary/pay is one that is made for childcare vouchers.

I would still be interested to know what the limits are though.

[Deleted User]

http://www.hmrc.gov.uk/manuals/eimanual/EIM42774.htm

Some guidance on Salary Sacrifice from HMRC website

bigturnip

subsoniccoyote wrote: »

http://www.hmrc.gov.uk/manuals/eimanual/EIM42774.htm

Some guidance on Salary Sacrifice from HMRC website

Thanks for the link.

If anyone has any info on tax credits and the limits that's what I'm really interested in.

dmg24

Can you explain what you mean by 'the limits'?