Salary sacrifice into pension to keep child benefit.
Discussion
Brads67 said:
My full whack in income tax.
PAYE whilst I was earning 100k a year is painful to say the least but am paying far less these days. But I`d be embarrassed to hide part of my wage to get child benefit.
Do I contribute enough to be allowed to comment ?
No-one is ‘hiding’ anything. Pension contributions are intended to be paid from gross salary. Child benefit is intended to be calculated based on gross salary after adjustment for pensions.PAYE whilst I was earning 100k a year is painful to say the least but am paying far less these days. But I`d be embarrassed to hide part of my wage to get child benefit.
Do I contribute enough to be allowed to comment ?
Simple.
Brads67 said:
Paying extra into a pension in order to keep apparent salary down low enough to qualify for benefits is hiding it.
Call it what you like, but it is a little too " Jimmy Carr" for my taste.
Don`t really care very much but hey, its the internet so we get to say what we feel eh ?
If you think paying into a pension is anything like a ‘Jimmy Carr’ tax avoidance scheme then you either know nothing about the JC Scheme or about Pensions, or maybe both.Call it what you like, but it is a little too " Jimmy Carr" for my taste.
Don`t really care very much but hey, its the internet so we get to say what we feel eh ?
But yes, you can say what you feel, obviously.
TwigtheWonderkid said:
Exactly, and seeing as the Tories promised they would not touch child benefit, and then broke that promise, I see nothing immoral in arranging your affairs in order to get something that was promised to you.
Spot on; the government should have made the child benefit changes apply only to children born after a future date. To apply it to children born years ago is unfair. But seeing as reducing your gross income to £50k is entirely legitimate, you could argue that it's been balanced up. Brads67 said:
Paying extra into a pension in order to keep apparent salary down low enough to qualify for benefits is hiding it.
Call it what you like, but it is a little too " Jimmy Carr" for my taste.
Don`t really care very much but hey, its the internet so we get to say what we feel eh ?
You obviously care quite a bit.....Call it what you like, but it is a little too " Jimmy Carr" for my taste.
Don`t really care very much but hey, its the internet so we get to say what we feel eh ?
Just can’t get where you are coming from, the definitition of hiding is “to conceal from sight; prevent from being seen or discovered”
The OP is not hiding anything, the payment is shown clearly going into his pension under salary sacrifice, nothing untoward, no hiding and certainly doing nothing wrong and very far away from “Jimm Carr” as you put.
From one of your previous posts trying to get the best out of a pension pot you have -
“Was thinking that as it`s being used and run by a company albeit to rent to private individuals it may be a commercial property, but maybe not”
Double standards come to mind...........
Edited by tighnamara on Tuesday 20th February 20:20
Edited by tighnamara on Tuesday 20th February 20:52
Brads67 said:
Why ?
I was trying to maximise a return on my pension, not try to make it look like I earn less to claim benefits.
You obviously really care !
Which bit are you still struggling with? No-one is trying to 'make something look like something different'. They are following the rules exactly as intended. HTHI was trying to maximise a return on my pension, not try to make it look like I earn less to claim benefits.
You obviously really care !
Brads67 said:
Why ?
I was trying to maximise a return on my pension, not try to make it look like I earn less to claim benefits.
You obviously really care !
I do really care, especially when someone continues to post such drivel. I was trying to maximise a return on my pension, not try to make it look like I earn less to claim benefits.
You obviously really care !
You were looking at a way to purchase a residential property through your pension and reduce your tax.
As I said double standards........and obviously not the brightest.
Trophy Husband said:
We give our child benefit to the NSPCC. I suppose we're all different aren't we?
We are, https://www.nspcc.org.uk/what-we-do/about-us/organ...That's why I would look to try and support a small local charity 'for children' if needed with probably less overheads than those above.
Slightly OT i was chatting with someone the other day after a local golf club made about a 6k donation to charity unfortunately it was a national 'charity' and probably won't even cover a 1/4 of the local charity shop managers wagers.
It was mentioned that 4 £1.5k donations to local community groups and charities may be seen as much more beneficial by those who have put their hard earned into it.
Brads67 said:
Paying extra into a pension in order to keep apparent salary down low enough to qualify for benefits is hiding it.
Call it what you like, but it is a little too " Jimmy Carr" for my taste.
Don`t really care very much but hey, its the internet so we get to say what we feel eh ?
Meanwhile, if Mr OP earns £60k, he has to pay back all of the Child Benefit, which he may well have contributed to over many years as a non-parent. Call it what you like, but it is a little too " Jimmy Carr" for my taste.
Don`t really care very much but hey, its the internet so we get to say what we feel eh ?
Yet next door, Mr & Mrs OP-Neighbour can earn £50k each, a combined £100k, and rightfully be awarded all of the Child Benefit that they are due.
The whole system is completely unfit for purpose. The OP is rightfully planning around the stupid rules that successive Governments have imposed and is perfectly entitled to do salary sacrifice into his pension (so that, in theory, he may be more affluent in retirement and thus fitter and healthier and, it is hoped, less of a burden on the state because of that.
Careful you don’t trip getting down off your high horse.
PurpleTurtle said:
The whole system is completely unfit for purpose.
Spot on.PurpleTurtle said:
The OP is rightfully planning around the stupid rules that successive Governments have imposed and is perfectly entitled to do salary sacrifice into his pension (so that, in theory, he may be more affluent in retirement and thus fitter and healthier and, it is hoped, less of a burden on the state because of that.
tighnamara said:
I do really care, especially when someone continues to post such drivel.
You were looking at a way to purchase a residential property through your pension and reduce your tax.
As I said double standards........and obviously not the brightest.
You don`t seem too bright yourself. I was asking what the rules were and what could or could not be done. Not avoiding tax at all, you have simply made that bit up.You were looking at a way to purchase a residential property through your pension and reduce your tax.
As I said double standards........and obviously not the brightest.
I know what the rules on child benefit are, I`m simply stating my opinion on it.
If you don`t like that, then try mumsnet.
Brads67 said:
You don`t seem too bright yourself. I was asking what the rules were and what could or could not be done. Not avoiding tax at all, you have simply made that bit up
What could or could not be done to reduce / avoid tax you mean??Brads67 said:
I know what the rules on child benefit are, I`m simply stating my opinion on it.
If you don`t like that, then try mumsnet.
Other people are simply pointing out that your opinion is poorly informed, particularly where you deem the pension-child benefit approach and Jimmy Carr’s tax scheme to be “basically the same”.If you don`t like that, then try mumsnet.
If you don’t like other people pointing out where you’re talking nonsense, then you could try mumsnet.
Edited by sidicks on Wednesday 21st February 16:20
Brads67 said:
tighnamara said:
I do really care, especially when someone continues to post such drivel.
You were looking at a way to purchase a residential property through your pension and reduce your tax.
As I said double standards........and obviously not the brightest.
You don`t seem too bright yourself. I was asking what the rules were and what could or could not be done. Not avoiding tax at all, you have simply made that bit up.You were looking at a way to purchase a residential property through your pension and reduce your tax.
As I said double standards........and obviously not the brightest.
I know what the rules on child benefit are, I`m simply stating my opinion on it.
If you don`t like that, then try mumsnet.
Nano2nd said:
your allowance would of been long gone £42,000 ago...
No it wouldn’t. Personal allowance starts to be removed once you exceed £100k.https://www.gov.uk/income-tax-rates/income-over-10...
Brads67 said:
You don`t seem too bright yourself. I was asking what the rules were and what could or could not be done. Not avoiding tax at all, you have simply made that bit up.
I know what the rules on child benefit are, I`m simply stating my opinion on it.
If you don`t like that, then try mumsnet.
Correct, not the brightest but do ok .........I know what the rules on child benefit are, I`m simply stating my opinion on it.
If you don`t like that, then try mumsnet.
Haha, bit of a bite there.
You were challenging after being reminded what the rule was.
Looks like you are pretty much out on your own with this one. The OP was welll aware of the child benefit rules, hence why he was looking at salary sacrifice.
PS. What’s mumsnet got to do about being financially wise.
Have a good night.
Brads67 said:
Paying extra into a pension in order to keep apparent salary down low enough to qualify for benefits is hiding it.
Call it what you like, but it is a little too " Jimmy Carr" for my taste.
Don`t really care very much but hey, its the internet so we get to say what we feel eh ?
https://www.gov.uk/child-benefit-tax-calculator/mainCall it what you like, but it is a little too " Jimmy Carr" for my taste.
Don`t really care very much but hey, its the internet so we get to say what we feel eh ?
Please have a look at Section 4 - it states 'Salary before tax' (with pension contribution deducted). Have a try yourself - you might now understand how the system works as intended by the government.
Or you could keep blaming people like me of being fraudulent..... I could apologise for being a law abiding citizen or am I sorry for your lack of intelligence?
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