Salary sacrifice to be taxed

They need more people to pay into pensions not less.
There might be some elements they remove like cycle to work but I doubt they will remove a pension part. Especially given most private pensions go into stocks and shares and they won't want to risk volatile stock market

Have you no other option but to work a minimum wage job? The incentive is there for people to get an education or a trade and get a job that pays above miminum wage, so I’m not sure you comparing yourself to everyone else in your generation is valid? We can hardly expect those that spend a lifetime on minimum wage to save for retirement and more and more people are going to spend a lifetime in rental housing , so it’s people like yourself who will require support from others in retirement…….hence why others need to pay more in taxes!

It will affect ordinary people, not the rich. The rich will have ways to avoid tax legally.

Are you talking about the billionaires here?

This is so depressing. If this happens, I will feel like just contributing the bare minimum each month to my salary sacrifice now and relying on Pension Credit when I get to pension age.

Fucking Labour.

Using salary sacrifice for pension payments avoids paying National Insurance on it. The biggest beneficiary is the employer as they pay less Employer NI contribution. The employee saves a bit too.

Are people confusing salary sacrifice with the income tax relief on pension contributions? There are no plans to scrap that.

sotrry that is a billion, not ten billion

The money isn't there to pay the workers - but its always there to pay the shareholders

if you don't want to stand up and be paid properly - fine, but don't moan about it

I worked in a factory on the assembly line back in 1987 earning £240 per week, for a non skilled job, the average wage in the Uk is now £36,000 per annum and that is 3 x what I was earning 38 years ago. The union I pad subs to wasn't great but they got us a decent enough wage and a house was £18000-£24,000 for a 2 bed terrace. Now the same house would be £250,000-£300,00

Its not the tax that is the problem its the low wages, the media is whipping up a frenzy as they want to blame the cost of living on the government rather than the actual problem getting noticed.

You have train companies dishing out £10bn in a decade to the shareholders but pleading poverty over wages

People WONT be fucking taxed on their pension contributions. FFS🙄
Are people really this thick?

It’s not a dodge, that makes it sound like a loophole rather than a deliberate decision to encourage pension contributions. If they don’t want to encourage them as much anymore then fine. But this isn’t some sneaky loophole that they’re finally closing.

Has anyone considered this might be a good thing?
It might stop the Men who do this to get out of paying CM by artificially lowering their earnings, often down to minimum wage.
It’s a tax dodge encouraged by employers because it saves them NI.
Most of the people commenting online seem to have NO idea what salary sacrifice actually is.

Interest on bonds is taxed every year
Pension interest isn’t

Agree. I do think the lower threshold ( £12570 ) should be looked at for both ni and tax

Along with compulsory ni contributions for the self employed

A way to enforce no cash payments to the self employed might also bring more into the coffers.

Yes but if people are taxed on the pension money as they pay into it, more people will keep the money instead and either spend it or save into a bond. Why would people pay into a pension where their money is locked in until they are 70+ for no financial benefit.

Some Entire industries have terrible pay
It would make no difference if you looked elsewhere if everyone is offering the same
Nor would it make any difference if everyone stood up to demand more

If the moneys not there it’s not there
Not everyone works for some huge industry or has access to a union.
It really is put up or shut up for most

The country needs to reduce benefits, encourage / make everyone work a full week and stop cherry picking taxes on aspiration and forward planning

Nothing stops us having private pensions too.

Nothing stops Europeans from having private pensions too.

It's not unreasonable to be concerned about how defined-benefit pensions are going to be funded in future. It is clear how a defined-contribution pension is funded: a fixed amount of money goes into a pot, you withdraw it until it's gone, the end. That is not the case for DB pensions funded out of tomorrow's taxes.

(I include the state pension as well as public sector DB pensions in that.)

I think the govt should stop "pitch rolling" or to put it another way, torturing us, and just tell us all about the budget on budget day. Or putting it another way, Stop trying to butter us up for the inevitable tax rises.

yeas

and what are you going to do about it? moan or collectively stand up and tell your employer, you're not doing it for the pittance they pay you? Or are you worried about the shareholders not getting their dividens if the workers get a proper pay rise?

stop moaning and do something about the shit pay you're getting that you can barley live on

They need to bring back the 10% tax on low earners and benefit recipients. We’re the only country in Europe that doesn’t have it.

My employer gives me the NI saving, so as well as saving 20% tax I get the NI they save too. This is not uncommon in the sector I work in and has really helped boost my pension, I will miss it if it goes.

Stop gaslighting.

The whole ‘worse state pension in Europe’ thing is nonsense too. We have a state pension and occupational pensions. The government gives you the state pension and allows you to save into your occupational pension tax free.

in the vast majority of European countries there is no occupational equivalent. You, your employer and the state invest everything into your state pension, hence it’s much higher than what we have in the UK. If you compare occupational pensions + state pensions in the UK with state pensions in other European countries we are bang in the middle. No grievance to be had here if you compare apples with apples and instead of apples and pears.