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I cannot give you financial advice on whether you should move your ISA funds into your pension. You would need to consult a financial adviser and review the investment performance of the ISA.
You can certainly sacrifice salary in exchange for your employer making a contribution to your pension plan but the employer will get the tax relief. If you do that, your gross earnings for the year will just be less than they would otherwise have been. If you have already exceeded £100,000 then you might consider making a one off contribution to your pension plan to save as much of your personal allowance as possible. Look here for information on adjusted net income.
I hope this helps but let me know if you have any further questions.
If you sacrifice salary, you won't pay tax or NIC on the amount sacrificed and matched via an employer contribution into your pension plan.
If you make a personal pension contribution, you will get basic rate tax relief at source of 20% and a further 20% through your self-assessment tax return. You won't save any NIC.
If you sacrifice £1,000 and your employer pays that into your pension then you will have £1,000 in your pension. If you had been paid £1,000 you would have paid £400 in tax and £20 in NIC.
If you put £400 into your pension as a personal contribution you will save £160 in tax overall. £80 will be added to your pension to make the total £480. The other £80 will either reduce your tax deduction from your pay or be claimed via your tax return.
If you put £400 into your pension as a personal contribution it will gross up to £500 and HMRC will add £100 so you have £500 in the pension. You will claim a further £100 in tax relief through your tax return.
You are saving tax by sacrificing salary.
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