Anthony
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RE: Salary Sacrifice Pension
Thanks for your input Clive. Please say if this example works: Colleague, £65k salary, £10k salary sacrifice, leaves £55k taxable, pays the excess over £50270 to £55k at 40% tax but saves paying 40% on the 10k salary sacrifice. Me, £45k salary, £10k salary sacrifice £35k taxable, £20k other income, £55k taxable, pays the excess over £50270 to £55k at 40% tax but hasn't benefited from 40% tax saving on the 10k salary sacrifice (as basic salary is at 20% threshold) -
RE: Salary Sacrifice Pension
I don’t think you are correct @BellaBoo To me if I earn 45,000 at my main employment, my salary sacrifice contributions (that are my contributions - not my employers contributions) benefit me at a basic rate. If my colleague earns £55,000, their salary sacrifice contribution benefits them at a higher rate. If I earn £10,000 through self employment and property income, I’m on approx the same salary gross but my pension contributions have only given me relief at basic rate. I will follow the advice of the HMRC admin. -
Salary Sacrifice Pension
I make a personal pension contribution with my employer paid by salary sacrifice. This is saving income tax on my payslip at Basic Rate. I also have income from property rental and self employment that takes me over to be a Higher Rate tax payer. Am I not able to claim the additional 20% tax relief as my income all together is in the Higher Rate bracket but I am only getting tax relief on my salary sacrifice at Basic Rate? If so, would I just put this on my Self Assessment like a gross pension payment? Thanks