Salary sacrifice to be taxed

[SomethingInTheAirToday]

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

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.

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

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

sotrry that is a billion, not ten billion

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.

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.

Are you talking about the billionaires here?

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

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!

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

Just because people disagree with you doesn’t mean they are all confused about the issue. OP’s link is very clear that it’s NI being talked about.

Some employers offer more generous employer pension contributions that are presumably in part paid for by the reduction in their employer NI. So employees may also find that that drops as well.

Thankyou

Triple lock = 3 or 4 per cent of not a lot
= not a lot.
Pensioners are on HALF the living wage. Not exactly living it up thry worked 40-50 years as they were told to. Dont deny people living in poverty.

This. I’ve literally just put plans in place to start overpaying in Jan since I’ve just received a payrise which makes me a higher rate tax payer. Excellllllent. :(

You are right that they are on half of the living wage BUT most of them don’t have mortgages/rent, childcare and travel costs. For a two bed terrace in my area, a full time childcare place and a train pass to London, that would require £4.5k per month after tax for just those three items. That “living” wage does go very far…

Just because companies offer it, it doesn't mean people take it up. Every company I have worked at has offered it but most people I have spoken to about it don't know it exists.

As one of those troublesome pensioners can I ask what your suggestion is if the triple lock is done away with.
I got the princely increase of £34 every 4 weeks this year. I still have outgoings, for some reason the pensioner bashers think we don't have any expenses when we retire. Just like you op all my bills and food has gone up.
I do not live a life of luxury I just worked 50 fucking years for the privilege of not having to do it any more.

No, it isn't. You can't claim NI back, only income tax.

You will STILL get full tax relief if they do this.
Why are you being so wifully ignorant?
You would just pay a bit of NI, if you Sal Sac £10k, you would pay £640 NI but still save
FOUR THOUSAND ££s in tax if you’re a 40% tax payer.

Reeves plans £2bn Budget raid on UK retirement savings

Better now?

💯 % this!!!

Not taxed.

It only affects salary sacrifice, which most pensions are not, it's NI not tax, and it's after £2k pa.

AND, as we've big had the bloody budget yet, like all these threads, it's a rumour.

I dont blame you for looking after number one. After all everyone else does.

I’m unclear on which policies are being actively considered by the treasury, which are being presented to the press to see how they land, and which are being churned out by think tanks keen to see some of the crackpot ideas that have been gathering dust get an airing. Whichever it is, the result is hugely damaging for U.K. plc. It means no one wants to invest here and taxpayers are leaving in unprecedented number. This increases the tax burden on the rest of us and increases the interest rate in government debt. It’s an appalling situation. Someone please start promoting this country.

It isn't a plan to cut tax relief.