Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Salary sacrifice mortgages petition is going to Parliament

39 replies

KievLoverTwo · 03/06/2023 18:42

What do you think?

The OH cynically said 'it will just be another way for employers to tie you to the company.'

I doubt the government have the money to allow the tax and NI relief it would allow that folks already pay on our mortgages, tbh.

https://www.dailyrecord.co.uk/lifestyle/money/calls-pay-mortgage-salary-sacrifice-30041394

https://petition.parliament.uk/petitions/633889

New calls to allow people to pay mortgage through their wages before deductions

Paying for things through your company payroll using your pre-tax salary is known as ‘salary sacrifice’.

https://www.dailyrecord.co.uk/lifestyle/money/calls-pay-mortgage-salary-sacrifice-30041394

OP posts:
GasPanic · 05/06/2023 11:08

KievLoverTwo · 04/06/2023 10:46

I hadn't considered the wider implications. You all make very good points. It would only benefit a small sector of people, whilst taking money from the NHS.

I suppose you could argue giving money to any cause is "taking money from the NHS" as there is a finite pot of money and taking money out of it to spend on one thing means less money for something else.

Governments tend to spend money on things that have political impact. The higher the political impact the more money is generally spent.

The NHS has high political impact. But so does families having their houses repossed and them kicked out on the street. No government wants large numbers of repos - it's bad for business.

The real question is how best the government should prevent this, either through direct wealth transfer to mortgage holders via tax offsets or through loans/grants/government equity stakes that are redeemable once the payment difficulty period is over.

Given the fact that successive government have constantly meddled and subsidised the housing market over the past 2 decades in order to maintain high house prices and prevent a much needed correction in prices, it's not clear to me what action they might take going forwards. Offseting mortgage costs against taxation will be yet another sticking plaster over a fundamental problem - house prices that are too high.

The question is whether this government feels this is the time to stop trying to prop the market up against economic headwinds and actually lets the market find its own level or wants to pass that hospital pass forward onto someone else.

AnOKYearForTheRoses · 05/06/2023 11:09

I can’t see how this would be workable.

Of you change job and there’s a difference in how payroll is run (say fortnightly in old job, monthly in new), how would that work?

Would people really want their employer knowing their mortgage info?

Why should the burden switch to the employer- should they allow rent payments via salary sacrifice? Car payments? School trips?

I earn a high salary and have more than one mortgage- why should I get more of a benefit than someone on a lower wage paying a smaller mortgage on a cheaper property?

GasPanic · 05/06/2023 11:13

AnOKYearForTheRoses · 05/06/2023 11:09

I can’t see how this would be workable.

Of you change job and there’s a difference in how payroll is run (say fortnightly in old job, monthly in new), how would that work?

Would people really want their employer knowing their mortgage info?

Why should the burden switch to the employer- should they allow rent payments via salary sacrifice? Car payments? School trips?

I earn a high salary and have more than one mortgage- why should I get more of a benefit than someone on a lower wage paying a smaller mortgage on a cheaper property?

They did it with MIRAS.

They can do it again in some way if they wish to.

In many ways it is probably easier to do things like this these days because the IT systems are becoming more wide ranging and are (gradually) getting more linked up over time.

purplepassionfruit · 05/06/2023 11:16

I think this is like the other salary sacrifice schemes. The wealthy will gain and the poor will never get their foot in the door.
Be incredible for my family though...

MaybeSmaller · 05/06/2023 13:37

Never happen. It would be seen as (and Labour would play it up as) a perk for the better off, as higher rate taxpayers would benefit most of all.

And where would it end? If I can buy a house via salary sacrifice, why not a car? Or a holiday? What about people who are renting; can they pay their rent via salary sacrifice as well? Can I pay off a buy-to-let mortgage this way, or is this only for a house I live in?

SaveMeFromMyBoobs · 05/06/2023 14:36

MaybeSmaller · 05/06/2023 13:37

Never happen. It would be seen as (and Labour would play it up as) a perk for the better off, as higher rate taxpayers would benefit most of all.

And where would it end? If I can buy a house via salary sacrifice, why not a car? Or a holiday? What about people who are renting; can they pay their rent via salary sacrifice as well? Can I pay off a buy-to-let mortgage this way, or is this only for a house I live in?

I mean ... they'd claim its a perk for the rich because it is 😂 as you said they benefit most.

There isn't really a way to do it that doesn't benefit higher rate tax payers. Even if it was tax free on the first £1K for example, those on higher rates still benefit doubly on that sum.

AdiR · 05/06/2023 18:17

Finally something to help the middle class and those who suffer the most during these times and not only businesses. This will also make it affordable to own a home for more people who are now at the mercy of landlords. The people who claim this will impact NHS are the same who claimed Brexit will bring millions to NHS, why can’t they use those money? Ah, right… We wouldn’t be in this situation if it wasn’t for this toxic mentality. I hope people will finally think for themselves and see how much good can this change bring.

MissLucyEyelesbarrow · 06/06/2023 14:39

SaveMeFromMyBoobs · 05/06/2023 14:36

I mean ... they'd claim its a perk for the rich because it is 😂 as you said they benefit most.

There isn't really a way to do it that doesn't benefit higher rate tax payers. Even if it was tax free on the first £1K for example, those on higher rates still benefit doubly on that sum.

Plus money going into salary sacrifice schemes does not count towards minimum wage (stupidly) so employers would end up having to exclude low paid workers, to avoid breaking minimum wage rules. Plenty of families that can afford mortgage still have one parent on low pay, so would be disadvantaged.

And, yes, it would be lovely if all employers could afford to pay well over minimum wage, so that this wasn't an issue but, with so many hospitality and retail companies on the brink, it isn't going to happen.

SaveMeFromMyBoobs · 06/06/2023 14:49

MissLucyEyelesbarrow · 06/06/2023 14:39

Plus money going into salary sacrifice schemes does not count towards minimum wage (stupidly) so employers would end up having to exclude low paid workers, to avoid breaking minimum wage rules. Plenty of families that can afford mortgage still have one parent on low pay, so would be disadvantaged.

And, yes, it would be lovely if all employers could afford to pay well over minimum wage, so that this wasn't an issue but, with so many hospitality and retail companies on the brink, it isn't going to happen.

And if it took them lower paid workers out of paying tax and NI then they don't get their NI credits for state pension, which is even more important as they are also the jobs that don't come with the better occupational pension schemes.

DuesToTheDirt · 06/06/2023 14:58

It's a no from me. All this kind of scheme does is drive up house prices. It would be far preferable to somehow control the housing market (no, I don't really know how, but it's the only thing that makes sense long-term.)

ThankmelaterOkay · 06/06/2023 17:33

DuesToTheDirt · 06/06/2023 14:58

It's a no from me. All this kind of scheme does is drive up house prices. It would be far preferable to somehow control the housing market (no, I don't really know how, but it's the only thing that makes sense long-term.)

House prices don’t need to be controlled.

Houses just need to be used, built well, and shared amongst the population. Once houses were no longer an asset that could be used to make money off others, their prices would stabilise.

3BSHKATS · 07/06/2023 19:28

You can currently buy a car with salary sacrifice by the way … and the Conservative party, just up to the allowance that you can pay into your pension of £60,000 a year. How many average Joe’s think have a spare 60 grand a year to put into their pension ? That’s been implemented without batting an eyelid by the Conservative party. What do people pay towards a Mortgage . Hardly comparable is it?

fucktonofcats · 07/06/2023 20:19

Whilst I'd quite like to pay less for my mortgage, this whole proposal sounds batshit insane.

I would be financially better off if this went through, and yet, I'm opposed to it.

StrawberrySquash · 09/12/2023 00:43

No, we do actually need to pay tax, based on how much we earn. Will screw over lower earners. HRT payers already get the benefit for pension contributions. And I say that as someone paying HRT.

New posts on this thread. Refresh page