£90K+ perm salary similar to contract pay

[hgllgh]

If i get good perm role paying about £90K is it possible to have all of the 40% tax paid into a pension? Anyone actually done that or heard of someone else that has done that for a perm role?

In terms of what you get out of a role financially its broadly similar to contracting....

[TheFaQQer]

You'd have to ask the employer if there is any cap. Last time I was permie, 15% of salary was the most they would let me put in, and they would put in 9%

[ASB]

Most schemes will let you do it throught salary sacrifice. But think of the limitsthat apply to make sure they are not breached or no relief is gained andit is taxed on the way out.

also the employer is saving ers ni. They might want to make this good. Though my employer doesnt.

[BlasterBates]

You can put as much as you want into any pension scheme, but you need to claim tax relief if the employer doesn't contribute, i.e. you don't need to restruct yourself to any employer's limitations and eventually you get the tax benefit.

For this you really want to see an accountant, and you should discuss your pension plan with the company accounts dept, to see if you can sort out the tax out through PAYE.

[ASB]

You can put as you want into any pension scheme, but you need to claim tax relief if the employer doesn't contribute, i.e. you don't need to restruct yourself to any employer's limitations and eventually you get the tax benefit.

True. The issue isrelated to ni. However if as an employee in 40% there it is tax suffered 2which is reclaimed and ni suffered which is not very much.

so it probably makes little difference unless the er can be persuaded to split thexers ni saved through salary sacrifice.

[hgllgh]

So apart from the technicality with NI, I should be able to direct the 40% tax into my pension, but would sacrifice any employer contribution I guess....but at £90K+ salary level I would still be much better off paying the 40% into pension... which begs the question, why doesn't everyone at that salary level do this?

[Pondlife]

So apart from the technicality with NI, I should be able to direct the 40% tax into my pension, but would sacrifice any employer contribution I guess....but at £90K+ salary level I would still be much better off paying the 40% into pension... which begs the question, why doesn't everyone at that salary level do this?

Because until very recently the rules around annuities meant it didn't align with many people's financial planning.

Also, some people like to spend more than the 40% threshold.

[ChimpMaster]

Because until very recently the rules around annuities meant it didn't align with many people's financial planning.

Also, some people like to spend more than the 40% threshold.

And frankly if you're 40+ years old, is it still worth doing? (serious, though possibly stupid, question)

[hgllgh]

Because until very recently the rules around annuities meant it didn't align with many people's financial planning.

I see ... but now that things are moving to pensions flexibility with regards to annuities/drawdown etc, surely its a good idea to bolster the the amount in the pension as much as possible by putting away as much of the 40% as you can (within your spending plans)...

[TheFaQQer]

And frankly if you're 40+ years old, is it still worth doing? (serious, though possibly stupid, question)

If you are close to retirement, then your pension plan could well be moving towards a lower-risk profile anyway. In which case, if the charges aren't going to be high then whacking cash in that you can get out later at a lower tax rate might make sense.