After a long wait. The Autumn Budget is finally here!!! 💰

[Cosywintervibes]

https://news.sky.com/story/budget-2025-raft-of-tax-hikes-expected-today-as-more-policies-confirmed-13475413

Anyone like to join me in watching the budget today?

Is your work pension scheme actually salary sacrifice? Salary sacrifice schemes cannot take an employee below minimum wage so very unusual to have one if you’re on minimum wage

The tax is on workplace pensions. All of it is salary sacrifice! You pay a % of your wage into your pension

Ok - full disclosure- I haven’t read the leak but pre budget I thought she was adjusting salary sacrifice scheme stuff, NOT generally tax relief on pensions. To avoid embarrassing myself if I’m wrong, is it still salary sacrifice we’re talking about? Specific SS schemes?

Actually no that isn’t correct. Not all workplace pensions are salary sacrifice.

As far as I’m aware, just salary sacrifice. I think changing income tax relief on all pension contributions would have been much bigger news.

I have a workplace pension which is not salary sacrifice. I don't think the NHS DB scheme is salary sacrifice.

No you misunderstand. Not all workplace pensions are salary sacrifice. There’s standard workplace pensions, and salary sacrifice workplace pensions.

Headlines from the OBR report:

1 A freezing of income tax personal allowance, the higher-rate threshold and additional-rate threshold until 2030-31, which will raise £8.3 billion by 2029-30.

2 A tax raid on salary sacrifice pension scheme contributions, which will deliver £4.7 billion by the end of the decade.

3 A “high-value council tax surcharge on properties worth over £2 million” from April 2028, which it is estimated will bring in £400 million a year by 2029-30.

4 The government is also raising taxes on dividends, property and savings income by two percentage points, which will raise an additional £2.1 billion.

5 There will also be a new mileage-based charge on electric and plug-in hybrid cars from April 2028, which will bring in £1.4 billion.

I'd like more details on point 4 but couldn't see it in the OBR report.

This is what I mean, I don’t think salary sacrifice is available if you’re on minimum wage.

You pay a % of your salary into the pension.

Yes, but most workplace pension schemes offer tax relief but not NI relief.

SS offer both.

You need to check which yours is as it's not correct to say that all workplace pensions are affected.

Please forgive my ignorance but can someone explain the salary sacrifice/pensions thing to me in basic terms?

Am I correct in thinking that, if you earn, say, 60k and your employer contributes 5 percent to your pension and you add a further 3 percent, everything stays the same...but if (for example), your salary is technically 120k but you choose to 'sacrifice' 20k into your pension, your employer now has to pay NI on that?

Ive just walked past them all. So many police. Slightly muttering to myself is there nothing more effective they could be doing.

Correct - this won't affect anyone on minimum wage.

If you pay a percentage of your salary into the scheme it unlikely to be salary sacrifice. For salary sacrifice you agree with your employer to be paid say £35,000 rather than £40,000 and the employer pays £5000 into a pension, but your salary is £35,000 for mortgage applications etc.

SS means both employer and employee pay NI contributions at the adjusted salary - i.e. after the sacrifice. So for tax purposes, if you earn 120k but sacrifice 20k into your pension, you are only earning 100k.

THis is specific to SS schemes, not all workplace pensions as a PP is suggesting.

Lifting the two child cap is likely to result in more child deaths on channel crossings.

Two child cap

We have two children, we couldn’t afford any more so made that decision despite desperately wanting another child NOT to have one. Child benefit was taken away due to my husband earning too much (BTW that “high” wage barely covers our fixed cost bills - home/council tax/gas/electric etc - certainly doesn’t cover anything fun), I too work which means we can eat.

So we certainly don’t take out to cover our children. Having more children IS a lifestyle choice, I have no issue with emergency/short term cover to bring families out of a tough situation but this is not that, it’s a lifestyle choice.

“people voted for labour” not they didn’t they just didn’t vote for the conservatives.

Yes you do. But you don’t sacrifice a proportion of your salary into your pension unless it’s a specific salary sacrifice scheme. In the first you pay say, 5% of your salary into your scheme, in the second you sacrifice maybe £5000 of your income each year to go straight to your pension. Often used to stay under a tax bracket for higher earners.

Another tax raid after the ‘one off’ last time. Lies and taxes.

I think we can all tell her education was crap.... she doesn't need to keep telling us.

I would like point 4 to equalise tax from all forms of income, I think even a step towards this is fair.

2% point increase on basic and higher rates (and additional if applicable) for each of those I believe.

On income tax or NI?