Active discussions

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Salary sacrifice to be taxed

560 replies

SomethingInTheAirToday · 08/11/2025 19:02

https://x.com/politlcsuk/status/1986914552093745592?s=46

not only are my generation not going to have a state pension or private healthcare, but we also can’t save into our own pensions because we need to fund the current generation.

this makes me so angry

Politics UK (@PolitlcsUK) on X

🚨 NEW: Rachel Reeves will use the Budget to impose a £2k-a-year limit on how much salary can go into a pension before paying National Insurance The move will raise £2bn and hit salary sacrifice schemes [@thetimes]

https://x.com/politlcsuk/status/1986914552093745592?s=46

OP posts:
Thread gallery
7
Helpfullright · 08/11/2025 19:26

nietzscheanvibe · 08/11/2025 19:17

Surely you will still be able to pay extra into your pension? You simply won't be able to do it as a means of avoiding tax? 🤷

I pay over 30k a year in tax after shifting as much as I can out, trust me I’ll do anything within my power to protect my future as I’m going to get jack all!!

YorkshireGoldDrinker · 08/11/2025 19:25

The whole damn point of salary sacrifice was that it was immune to dirty government mitts and to encourage people to save for a pension. They know the state pension is unaffordable, but now they're going to make you pay anyway. Short term politics with no regard for second order consequences.

'twas ever thus.

I work in the private sector. You trade 40+ years of your life for a living (a couple of hours in the morning and evening and then two days at the end of the week, the evening of one is filled with a knotted stomach and Sunday scaries) and then what? Retirement? Yeah, right. Pension is taxed three times:

  1. National Insurance Contributions (that's as it's going into the pension pot)
  2. Income tax (that's as it's going into the pension pot)
  3. It's subject to income tax when you start drawing from your pension

This government can sod right the hell off, and QUICK.

Original poster
SomethingInTheAirToday · 08/11/2025 19:21

nietzscheanvibe · 08/11/2025 19:17

Surely you will still be able to pay extra into your pension? You simply won't be able to do it as a means of avoiding tax? 🤷

It’s not exactly avoiding tax, is it?

FWIW I’m on £24k a year and paying into my occupational pension because I have no other option. My pay that I bring in isn’t enough for me to also pay into a SIPP.

But yes, while the older generations get a triple protected pay rise each year, my generation should just be left to be in absolute ruins. That seems totally fair.

OP posts:
nietzscheanvibe · 08/11/2025 19:17

Surely you will still be able to pay extra into your pension? You simply won't be able to do it as a means of avoiding tax? 🤷

nietzscheanvibe · 08/11/2025 19:17

Surely you will still be able to pay extra into your pension? You simply won't be able to do it as a means of avoiding tax? 🤷

NorthXNorthWest · 08/11/2025 19:15

If they do it, it's more just stealing from tomorrow to pay for today's inefficient and unproductive.

NoWordForFluffy · 08/11/2025 19:12

Maybe Labour should stop floating every sodding idea they have in the media. Then we could stop considering each idea as it pops up! 🤷‍♀️

PandoraSocks · 08/11/2025 19:10

Maybe just wait until the budget measures are actually announced? We can all have a good moan then. Right now, it is a waste of energy.

NoWordForFluffy · 08/11/2025 19:07

frozendaisy · 08/11/2025 19:05

Nope won't happen this is one reason doctors went on strike last time, limits on pension "pots" that they had no choice over.

Try again @SomethingInTheAirToday

This affects the private sector, not public. Maybe you should try again?

frozendaisy · 08/11/2025 19:05

Nope won't happen this is one reason doctors went on strike last time, limits on pension "pots" that they had no choice over.

Try again @SomethingInTheAirToday

Swipe left for the next trending thread