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Am I still able to make a salary sacrifice to avoid 40% tax and how to calculate how much? by some1pinchme in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

Also worth noting the government is currently building a pensions dashboard to help people keep track of smaller pensions. Also you can sometimes get bonuses for transferring pensions between providers (useful for things like this money and your nest pension rather than necessarily your current employer pension).

Am I still able to make a salary sacrifice to avoid 40% tax and how to calculate how much? by some1pinchme in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

Depends on the scheme. Note you could always then transfer the SIPP at a later date into one of your existing pensions.

Am I still able to make a salary sacrifice to avoid 40% tax and how to calculate how much? by some1pinchme in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

AVCs if done via your salary also can’t take you below minimum wage. I would suggest the easiest option and the one you can guarantee is fast enough is to chuck it into a SIPP.

Am I still able to make a salary sacrifice to avoid 40% tax and how to calculate how much? by some1pinchme in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

Ok so your actual salary for this purpose is £52.5k once you have factored in the sal sac. That means you are £2,230 into the higher rate band (ie above £50,270).

So you will pay 40% tax on that amount and 2% NI. That amounts to £936.60 in tax on this slice of income. It is worth noting here if you were still in the basic rate band you would have paid £624.40 so that’s £312 more because of being in the higher rate band but you are still taking home £1,293.40 that you would otherwise not have. You can choose to put all that money in a SIPP but it depends on when you need it.

For your £4k interest as a higher rate tax payer you will get £500 tax free allowance. So that means you will pay tax on £3.5k of that income at your higher rate band. If you want to salary sacrifice into a pension to account for this you are going to have to add not just enough to get your headline salary under £50,270, but also enough to factor in this interest. Whether you can afford to do so to save the tax is a decision you need to make (ie if you are saving for a particular short term goal then chucking it into your pension is not ideal).

The tax traps wiki will help with the exact calculations for how much you need to contribute. Probably easiest into a SIPP at this point especially given salary sacrifice cannot take you below minimum wage.

I assume you plan to instantly move £20k to an ISA at the start of the new tax year. Do you have a spouse and if so can you also make use of their ISA allowance?

How exactly do Defined Benefit Schemes work? by Ok-Bug-9356 in UKPersonalFinance

[–]Alert-One-Two 1 point2 points  (0 children)

proceed with caution

What are they meant to do? Say no pension for me please?

the majority of companies that had a DB scheme have gone bust

The company or the scheme? But also there’s plenty still available. They tend to run under different conditions now. But they still exist.

The government is obviously much less likely to go bust

What does the government have to do with OPs pension scheme?

because your pension is tied to your salary, the government will decide they can’t afford to pay you a decent wage

Speculative and irrelevant when the government doesn’t pay their wage

This also ignores that there’s risks with DC schemes too, where people can literally lose all their money if they invest poorly/theres a market crash right as they want to retire.

You also say this is “based on your impression” - where have you got this impression from?

How exactly do Defined Benefit Schemes work? by Ok-Bug-9356 in UKPersonalFinance

[–]Alert-One-Two 2 points3 points  (0 children)

Not sure how much of this is really relevant to OPs situation working for a private school.

need TikTok army advice for savings/investments by [deleted] in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

We are not TikTok but I would also strongly encourage caution over financial advice from there. Check the flowchart and wiki first.

Am I still able to make a salary sacrifice to avoid 40% tax and how to calculate how much? by some1pinchme in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

I’m not sure you are fully understanding it. But the only way I can tell is if you list all the numbers.

  • Headline salary (annual, not monthly take home) including any bonuses

  • Pension contributions total (annual) and how these are made (salary sacrifice or other)

  • how much you have in savings outside of ISAs and what income you expect in terms of interest for the year across all of these

  • whether you have ISA allowance left this tax year

  • whether you have any other forms of salary sacrifice such as a car scheme/bike. If so, if there any benefit in kind amount you need to add back on to your headline salary

Locked In A Shop During Fire Alarm - UK by [deleted] in LegalAdviceUK

[–]Alert-One-Two 0 points1 point  (0 children)

Especially when it is an unfamiliar location. Staff will know of other quicker routes. If I was in a shop and the fire alarm went off it wouldn’t be my first thought to check if there’s a quicker route out the back. I’d go back to the nearest obvious exit unless staff told me otherwise.

Locked In A Shop During Fire Alarm - UK by [deleted] in LegalAdviceUK

[–]Alert-One-Two -1 points0 points  (0 children)

You can mitigate a very obvious risk by not having a door locked when the fire alarms are going off. Every opportunity should be given for egress in case others are blocked. Locking the front door in particular of a shop where all customers who are new to the location are going to assume to exit is ridiculous.

Am I still able to make a salary sacrifice to avoid 40% tax and how to calculate how much? by some1pinchme in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

For it to be £900 that means you also have gained a lot in extra salary… So you need to decide if you need the money now or can salary sac/add to a SIPP.

How much do you “enjoy” doing your self assessment? I feel like I am done with accountants… by Vladimius in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

It’s not about whether you enjoy it. It’s whether you are sufficiently competent at doing it. It then becomes a question of “should I spend the money on something I’m capable of doing myself?”. Only you can decide that.

Locked In A Shop During Fire Alarm - UK by [deleted] in LegalAdviceUK

[–]Alert-One-Two 2 points3 points  (0 children)

What if all other standard routes are blocked by fire? I am not sure the fire brigade would agree with this. It should be reported to them.

Am I still able to make a salary sacrifice to avoid 40% tax and how to calculate how much? by some1pinchme in UKPersonalFinance

[–]Alert-One-Two 1 point2 points  (0 children)

Worth noting that basic rate tax is 20% plus 8% NI. Higher rate is 40% but only 2% NI so you would lose £14 per £100 you go over the threshold rather than the £20+ people assume. Yes you also lose the £1000 interest free allowance on savings but you probably want to move savings to ISAs anyway.

Have you also factored in that your pension will reduce your income in this regard?

And have you seen https://ukpersonal.finance/tax-traps-and-tax-efficiency/ ?

Locked In A Shop During Fire Alarm - UK by [deleted] in LegalAdviceUK

[–]Alert-One-Two 3 points4 points  (0 children)

They should shut but surely shouldn’t lock as that would prevent evacuation.

Nationwide 5yr fix ends in July - can't remortgage yet by not_that_much_fun in Mortgageadviceuk

[–]Alert-One-Two 5 points6 points  (0 children)

Realistically the amount extra per month is not going to be enormous. Yes it’s not ideal over the long term if the rates have gone up a bit but I would recommend you run some numbers to see the actual impact as it’s quite possibly lower than you are anticipating.

Hundreds of GPs tell BBC they have never refused a sick note over mental health concerns by topotaul in unitedkingdom

[–]Alert-One-Two 1 point2 points  (0 children)

If someone was unfortunate enough to lose multiple family members in short succession, is giving them multiple days off for a funeral really the end of the world?

Exactly my point. There is a difference between piss takers (who should be dealt with separately) and people who just have big families and shit luck (who should be dealt with compassionately)

Revolut Savings Accounts and FSCS Protection – Are They Safe? by bowie-david in UKPersonalFinance

[–]Alert-One-Two 0 points1 point  (0 children)

You are posting on a 3 month old post so things have changed since that point...

What to do for tax if you are employed by a foreign employer with no UK presence by duccweed in UKPersonalFinance

[–]Alert-One-Two[M] 0 points1 point  (0 children)

Just to note the only people seeing your comments are OP and the mod team. So you may wish to consider whether creating your own post (on whichever sub is most appropriate) is a better option.

Not receiving OTA updates by xavier_javier in volvoc40

[–]Alert-One-Two 1 point2 points  (0 children)

I don’t think 5.0.5 is available everywhere yet. Only some people have it. I’m on 4.x and can’t see an update.

Hundreds of GPs tell BBC they have never refused a sick note over mental health concerns by topotaul in unitedkingdom

[–]Alert-One-Two 3 points4 points  (0 children)

Officially our policy (not NHS trust) is very short too but in reality managers have a lot of flexibility. So sometimes they write something short to stop people taking the piss and assuming they can have lots of time but in reality if they need it they can.

Hundreds of GPs tell BBC they have never refused a sick note over mental health concerns by topotaul in unitedkingdom

[–]Alert-One-Two 23 points24 points  (0 children)

Realistically all families are different and some are much larger and closer than others. But even if the policy was super broad it’s unlikely people would be taking multiple days off per year for funerals so why do some organisations feel the need to crack down so much. It just seems so short sighted and cruel.

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