Alan chaplin
@alanchaplin.bsky.social
Long time pensions professional. Trying to make them better; usually failing. This time it’s different
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.
November 12, 2025 at 1:40 PM
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
November 11, 2025 at 11:32 PM
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!!!
Into the bunker!!!
November 11, 2025 at 11:15 PM
What do we need? Team work, unity, collaboration…
Into the bunker!!!
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%.
November 11, 2025 at 11:08 PM
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.
November 11, 2025 at 11:04 PM
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
November 11, 2025 at 10:56 PM
Yikes. I suspect a letter from you would scare the s**t out of me! Look forward to reading it
I’m more
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
media.tenor.com
November 11, 2025 at 10:32 PM
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.
November 11, 2025 at 9:05 PM
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%).
November 11, 2025 at 9:01 PM
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...
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.
November 11, 2025 at 8:02 PM
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?
November 11, 2025 at 7:53 PM
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.
November 11, 2025 at 7:52 PM
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.
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
November 11, 2025 at 7:49 PM
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
November 11, 2025 at 7:41 PM
*adjusted net income
Don’t think that’s right. Adjusted next income takes post tax contributions into account? www.gov.uk/guidance/adj...
Personal Allowances: adjusted net income
How to work out your adjusted net income and the circumstances when it can affect your tax liability.
www.gov.uk
November 11, 2025 at 7:40 PM
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%.
November 11, 2025 at 7:38 PM
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.
November 11, 2025 at 7:35 PM
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.
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.
November 11, 2025 at 12:45 PM
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.
November 11, 2025 at 7:20 AM
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
November 10, 2025 at 6:18 PM
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.
November 10, 2025 at 6:13 PM
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.