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?

Salary sacrifice is a particular tax wrapper though where your on the books salary is reduced and the surplus paid into your pension. So I pay 15% of my salary into my pension through salary sacrifice because it’s more tax efficient - I also have the option to pay a straight pension payment which isn’t salary sacrifice. It’s the salary sacrifice part that seems to have a new limit.

Yeah, I’m confused by some posters… could someone explain?

Salary sacrifice means you pay into your pension before income tax and national insurance is deducted from the remainder of your salary… right? And they’re making it so NI is taken before? That’s awful!

I assumed most people had salary sacrifice workplace pensions… other than minimum wage, who wouldn’t? What workplace wouldn’t have that set up for their employees? And most people surely have workplace pensions as they’re a legal requirement now and only the very wealthy would have private pensions?

It affects anyone paying tax. And thanks to the threshold freezes, every worker is paying more tax.

The NHS pension scheme is not salary sacrifice.

Income I believe

@TeenagersAngst - thanks! But what does that mean in real terms - does the employer take the hit, or does the employee?

Reducing cash ISAs to £12,000, extra 2% tax on savings income.

Yes, let's de-incentivise investment and savings completely.

There's a reason why investment income is not taxed the same as income. Risk taking is seen as a good thing.

What if you make a loss on your investment? Is the government going to offer a tax rebate?

It’s not enough. The discrepancy between public and private sector pensions is already huge. This will make it worse.

Not everyone wants a salary sacrifice scheme. For some people trying to buy a house for example having the higher on paper salary is better.

Yes it’s a requirement to have a workplace pension now but most workplace pension schemes are not salary sacrifice schemes, they’re just contribution schemes.

I'm watching too.

Child benefit cap. Anecdotally I know someone who chose to have a fifth child when there was the 2 child cap. She had lived on benefits for years but this encouraged her to get a job. Domicillary care to fit round her kids.

Pretty much what is says on the tin, that one:

"The Office for Budget Responsibility released documents on its website ahead of finance minister Rachel Reeves’ budget statement showing the dividend tax rate will increase to 10.75% for basic rate taxpayers and to 35.75% for those in higher tax brackets."

So business friendly....

If this is an indication of the fiscal literacy of the average person they deserve the impoverished old age they will undoubtedly get.

Is it just salary sacrifice pension contributions that are impacted and no other salary sacrifice schemes?

Dont get my started on the huige discrepancy between public and private pensions. Employer payments nearly 30% anyone? Its not sustainable.

Unless we all should be working in the public sector?

Yes, but to be clear it’s after a £2,000 annual exempt amount - I’m pretty sure that’s a £2,000 employee cap.

So if you earn £40,000 and salary sacrifice 5%, you’ll put £2,000 into your pension, and won’t be affected by this change.

Sadly yes. No compound interest under the mattress

It's certainly illuminating how bad peoples understanding of pensions is, including their own pensions.

Exactly why would I risk my house to get an income from building a business which employees others to pay the same rate of tax as if I just got a job. I'd take the low risk employment if their no upside for the risk.

Anything on property and savings?

Apparently so. Who needs the private sector.

I’d hope not. I cannot see any logic in adding NI to pension contributions but not to other salary sacrifice benefits eg car leases. I’d assume it’s a total £2,000 salary sacrifice amount, and then anything over that will have NI.

A small one, but making the compensation (when it's finally received) from the Infected blood scandal exempt from inheritance tax is a very decent move. Not one I was expecting, but a very good thing to do in the circumstances.