Alan chaplin

Will take ages/likely never. At times like these when tax rises required, put income tax up. If we get to better position and tax cuts possible, cut NI.

In large financial services sector, relatively common. But in general, costs of implementation are not insignificant. So the pitch is cost is less than employer ni savings so something in it for employer and employees benefit. Still lots of work to implement

What do we need? Team work, unity, collaboration…

Into the bunker!!!

Employers passing on some of their savings is rare. A friend of mine is so annoyed his employer doesn’t he pays the extra 2% NI for the satisfaction of knowing it costs his employer 15%.

It was a long time ago but I won prize for idea of the month or similar for sacrificing bonus once. Gave employees options: % / fixed amount / everything over a figure. Supported people who wanted to keep income below a level, pay % to pension or wanted a fixed amount to pension and keep the rest.

Yikes. I suspect a letter from you would scare the s**t out of me! Look forward to reading it

a blue cartoon character is crying with tears falling out of his eyes Alt: a blue cartoon character is crying with tears falling out of his eyes

I’m more

Definitely in the long term. In the short term, I think it’s very complicated so leave alone until you have a coherent strategy for tax incentives and benefits interactions.

Exactly. In order to raise revenue from removing SS, the NI relief has to go/be limited. The beneficiaries of NI relief are firstly employers (15% NI) who have been asked to contribute a lot recently. 2nd is basic rate tax payers (8% NI) and 3rd higher and top rate tax payers (2%).

You don’t need salary sacrifice to avoid the cliff edges here. Private pension contributions work too but don’t have the ni savings and convenience of salary sacrifice bsky.app/profile/alan...

That’s 2 of us. Who else is in?

Salary sacrifice makes it easier especially when bonuses paid in March payroll. Also, firms selling salary sacrifice implementations unsurprisingly use these thresholds as key points to highlight the benefits of it in employee presentations.

Hmrc example of adjusted net income calculation

I know and believe it is adjusted net income that counts for hicbc and the childcare eligibility test. That deducts private pension contributions. Eg this example from hmrc

*adjusted net income

Personal Allowances: adjusted net income How to work out your adjusted net income and the circumstances when it can affect your tax liability.

Don’t think that’s right. Adjusted next income takes post tax contributions into account? www.gov.uk/guidance/adj...

Financially, the biggest beneficiaries of salary sacrifice are employers (15% of contributions). A few share some of this with employees but not common. Basic rate tax payers next as they save 8% and then higher and top rate payers save 2%.

You don’t need salary sacrifice to avoid that - you can make pension contributions on your own out of post tax income to reduce taxable pay. Salary sacrifice saves ni (2% employee + 15% employer) and is more convenient as don’t need to claim the higher rate relief for contributions on sa100.

This is a great fun listen. Start of thinking a tunnel to the Isle of Wight is a crazy idea and end up amazed it’s not been done yet.

@jamesomalley.co.uk sure you can think how #freethePAF could help make this happen

A radio programme like the Shipping Forecast but it’s called Bin Day and it just reads out every single council in the country’s bin schedule

Completely impractical without serious thinking and planning - not something associated with the government for some time. Regulations are still being changed to try to get the relatively simple abolition of LTA 2 years ago to work.

I happen to think in the long run, salary sacrifice should be removed but even I wouldn’t do it now. As you regularly point out, lots of extra costs have been added to employers recently and adding more now will slow company growth and we need that as high as possible.

Whenever this happens I’m amazed the option to automatically do the equivalent of scan a screenshot is not an option yet

Suspect a lot of this point of view is survivorship bias. Lots of small organisations die after 1 or small number of mistakes. Large organisations can weather them so seem to make more.

Just occurred that the BBC is the most literal example of Conquest's third law in that it is actually run by a cabal of its enemies.

You pay tax on the miles. Could add a way to reclaim it I suppose if a significant issue. I suspect uk:non-uk miles is a very big ratio.

Mileage is recorded as part of MOT test isn’t it? People have to provide info for first 3 years but incentive to be reasonably accurate is high if you know any underreported miles will catch up with you in 3rd year.

So sorry for your loss. Beautifully written tribute for a great friend.

I am someone who thinks pensions tax relief is largely wasted (please don’t cut it before I’ve benefited) but the employer NI is the bit that should go last as employer by far the biggest influencer on employee pension contributions

My view is it should provide a reasonable “basic” income for all. The “basic” part will change over time so I’d task low pay commission or similar body to monitor and recommend increase each year similar to the minimum wage.