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Advice needed re. salary sacrifice - effects on bonuses, 40% tax band

obsessed_saver · 2008-04-08 10:54:46

Hi guys, I'm a little confused about my situation at the moment. For 2007/08 tax year, my base salary was £35k. Salary sacrifice was around £1700. Then I had bonuses paid and the "amount taxable" according to my March 08 payslip was £42k, therefore I would have some income taxed at 40% (above the £5,225 + £34,600 = £39825…

Comments

Dick_here Posts: 1,605 Forumite

15 April 2008 at 10:11PM

Thanks, I see what you're getting at.

And I appreciate the effort you've made to explain it. That's what niggles me, the company heavily promote it simply on the basis of 'your take home pay will be higher' and are constantly trying to push people into it on that basis alone. The saving has not been explained, which made me - for one - question how much they were getting out of it. As I said previously, it seemed a lot of effort for .25% !

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