Salary sacrifice to be taxed

I'm a pensioner, presumably I funded the previous generation of pensioners if that is how it goes. I never fumed about it and I still pay some tax.

My son was offered a public sector job with 24% employer pension contribution
Stuff of dreams

And…. How?
im not disagreeing, just wondering what your exact solution is.

Eh? If you get the State Pension, plus your salary sacrifice scheme, you won’t be getting pension credits.

Get people back into work. Millions are at home that can be working.

And remind me again what your solution is?

NI, whatever. It’s a stealth tax. I’m a lifelong Labour voter and I don’t think I’ll be voting labour next time.

Over the last 20 years, the four employers that I have worked for have all run salary sacrifice pension schemes. Small and medium sized uk companies and Swiss and U.S. global companies. I appreciate that it may be different for people on minimum wage, but there is no person in my current team of 50 people that is on minimum wage. The only time I was given an option about a salary sacrifice pension was when a company that I worked for first introduced them. For every new company that I have joined, that’s how they have been set up.

Roll on election time.

Try having to answer your boss’s emails at midnight.

The hours in the private sector areinsane.

Yet low paid workers can have some of their their rent paid so the difference regarding property owners is irrelevant here

A full time min wage worker earns over £22k and many now can work from home so travel costs have reduced remarkably in recent years

A pensioner can no longer work and has to live £12k. Their costs to support their living are higher than a younger healthy person.

There really is little point in comparing the financial needs of two completely different demographics

Ugh. Fucking Labour..

That’s exactly what it is.

It's not really a gotcha.

Many people can't change career because they wouldn't be able to afford the student loan. Many nurses train early just like other students, before they have commitments.

And then we’ll still get taxed on our pensions.

So it’s double taxation, tax on salary and then tax on pensions with no salary sacrifice savings.

Fucking Labour.

This stings. I salary sacrifice a lot because I had almost zero pension provision until my mid-thirties and I am trying to make up for lost time in the few high earning years my career will likely afford me (ie my 40s).

No doubt I’ll be hammered with an income tax rise too, can’t wait. Love this government. My favourite.

Double post, iPhones are shit.

So many people will just put the bare minimum into their pension to stay under £237pm week threshold.

This just means I’ll overpay on my mortgage and abandon any extra pension salary sacrifice.

I'm not "against" them! I have introduced them at several employers, hence I actually know what they ARE.

It's on my list to look into at my current employer but as the vast majority of our staff are on min wage, there would not be the employer saving to justify it (and if this change happens it definitely won't be worth it).

Neither my current nor my previous two employers did them, by the way. Previous was public sector, not FS pension, and one before was an international bank.

Don’t like high taxes? Dont vote Labour.

There is 100% definitely a choice of opting into sal sac, 100%.

There has to be, that's the law. So, employers who run sal sac have to run non sal sac schemes as well. And salary sacrifice is a change of employee employment terms, which they have to be able to enter into willingly.

I have run sal sac schemes and had the odd person opt out (there are some circs where it could make you worse off, but that's quite technical, and some people don't like it because they like their whole salary to show on their payslip if they're about to apply for a mortgage, for example). And people on min wage cannot be on sal sac, they have to be on a standard scheme, because it's illegal to take an employees salary below min wage.

But, as I said, it's quite technical and few people seem to understand what it is (and assume it just means any pension where the contribution is taken from salary - which it doesn't).

Any Income over £237/wk or £367 for a couple means you’re above the threshold for pension credit

So it’s highly unlikely if you pay even a small amount in you’ll get pension credit. Especially as employers since 2018 must now pay into your pension

It's nothing to do with tax though. It's NI.

It doesn't affect the majority of workplace pensions, it doesn't affect SIPPS at all.

I do wonder whether how much she thinks she will save has been properly worked out. I'm not sure anyone in govt really understands pensions. I remember taking to Yvette Cooper about pensions years ago, I think she was shadow W&P secretary or something, and she didn't have a clue what I was talking about, and it was quite basic!

Well I never said that everyone’s pension was set up salary sacrifice. It was said that most people don’t opt into salary sacrifice. I pointed out that if your employer runs a salary sacrifice pension scheme, that’s what you get if you want a pension. There isn’t a choice as to whether you opt for salary sacrifice or not.

It was you that made the leap! It’s also really strange that you are so against salary sacrifice pensions. Millions of people are benefiting from them and they will help to ensure that they are not so reliant on the state in the longer term.

This thread is really weird.

I don't think anyone is having their tax increased, are they?