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Anyone knowledgable on Company Pensions?

(8 Posts)
flier Thu 03-Sep-09 15:41:20

DH has been told that he can opt to have his pension deducted from his pay before deductions for tax and ni. This would make a huge diifferemce to the amount that would then go into his pension scheme but I can't see anythinh online about it.
Anyone know anything about it?

Bettymum Thu 03-Sep-09 15:45:09

Our company does this, it's called SMART pensions. It saves me and the company money (because they don't pay employer's NI).
Here's a link I found that explains a bit about it on the HMRC website. I don't think it makes any difference to the tax your DH will pay, but it will reduce his National Insurance contributions.

StripeySuit Thu 03-Sep-09 15:50:56

Message withdrawn at poster's request.

flier Thu 03-Sep-09 22:21:53

ah, thank you very much, Bettymum and StripeySuit smile

ChasingSquirrels Thu 03-Sep-09 22:27:25

the only thing to watch out for is that if it is salary sacrifice - by efectively sacrificing some of his salary he is reducing his basic salary (so new salary becaomes 90% of what it was and company makes a pension contribution of 10%).
The employer may then use the new 90% salary as the basis for pay rises and bonuses. Which means he could lose out over time.

StripeySuit Thu 03-Sep-09 23:16:44

Message withdrawn at poster's request.

flier Fri 04-Sep-09 08:03:59

thanks squirrels and stripey. Squirrels - that is something we will get in writing now that you have highlighted it, thanks.

ChasingSquirrels Fri 04-Sep-09 14:05:36

Yes, some will use true gross, but others (mine own included) won't. So just something to bear in mind.
The NI savings are quite substantial though, and also for the employer.

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