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Salary sacrifice but not pension

5 replies

CastleTower · 18/11/2023 08:49

Just about to go over £50k for the first time, so need to think about child benefit.

I pay nursery fees by salary sacrifice, as it's a workplace nursery. Obviously this reduces my "salary" hugely, by £11k a year or something.

Does this kind of salary sacrifice count for the purposes of calculating net salary? Or only a pension salary sacrifice?

I asked a tax accountant (informally) and he didn't know.

OP posts:
helplesshopeless · 18/11/2023 09:00

The nature of salary sacrifice arrangements is that it reduces your taxable income, so id say you'd look at the net amount after nursery deductions when working out adjusted net income. You'd need to add back any taxable benefits, but workplace nurseries are a tax exempt benefit so you should be fine.

wokbun · 18/11/2023 09:08

Get a better accountant

CastleTower · 18/11/2023 09:47

@helplesshopeless Thank you, that's good to know it's not a taxable benefit, that's helpful.

OP posts:
Heatherbell1978 · 19/11/2023 07:31

It should say in your payslip. I pay quite a few things through my salary - pension, insurances, car, sharesaves etc so my salary is reduced a lot. Some are subject to tax and some not. My payslip has a 'taxable salary' figure which is what tax is calculated on.

Glittertwins · 19/11/2023 07:43

It counts, we had /have numerous salary sacrifices. But as a PP has said, it will be on your payslip.

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