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Salary Sacrifice Post 9/7/15 & Tapering

julesstewart1983julesstewart1983 Member
in Technical stuff

Morning all,

Can anyone confirm whether an increase in a longstanding salary sacrifice arrangement made post 9/7/15 as a result of an increase in salary would mean this would need to be included in threshold income? I don't think so as there is no change in the % contribution however I cannot get a definitive answer from our tech help. The same client has sacrificed additional bonus since that date which I understand would need to be included.

Thanks,

Julie

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Comments

  • IreneIrene Member

    Hi Julie

    Provided that the terms haven't changed, eg, client sacrificing 10% and is still sacrificing 10%, then this is not included for Threshold Income.

    Your right that New Bonus sacrificing is included for Threshold Income.

    Irene

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  • julesstewart1983julesstewart1983 Member

    Thanks Irene,

    On further review, the amount they have sacrificed has varied intra year so I would then need to include the full amount sacrificed throughout the period, and not just the amount eg that in excess of the 10% original, correct?

    Thanks,

    Julie

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  • arongunninghamarongunningham Member

    I'm probably missing something, but Threshold income is Salary plus Sacrificed Pension Contributions.

    So any increase in either will effect the Threshold income level?

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  • julesstewart1983julesstewart1983 Member

    Aron,

    Yes that’s right but if no changes to the salsac post 9/7/15 then it wouldn’t be included at all, I was trying to figure out was whether a rise eg due to salary increase would count. Think I’m all clear now. Thanks

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