Quote:
Originally Posted by mrmistoffelees
|
I'm already taking the pension contributions into consideration, but once you max out on the upper limit there's no savings.
The salary sacrifice option is not open to everyone to take advantage, if you are working via an umbrella company you are generally provided with a list of those that are approved and I found that many on the list I was provided did not offer salary sacrifice. The only option you have then is the pay the pension contributions after paying 40% or 45% tax and claiming it back at the end of the year from HMRC. However, you have still lost out because you have paid employee and employer NI on that money.
I fully expect Labour to remove the higher rates of tax relief on pension contributions, it will send out a message to their core voters that they are punishing the "rich".