CSA Calculations (salary sacrifice)

Cameron70 wrote:

Ahh...so If I upped my privately paid pension contributins from £40 to £200...

Your assessable income and payment would go down.

Hi
This route is how my ex partner successfully hides £300 a month by paying for a car on salary sacrifice...loophole soon to be closed when case is transferred to child maintenance service from CSA as they do gross calculations. She earns more than me (gross) but has less net income, so I have to pay her money. Brilliant.

CSA employee said that part of this move to close the loophole was the amount of men who up their pension contributions to avoid paying. Until we move to CMS the CSA are powerless to do anything. I am being pickpocketed legally, essentially.

people.. but as you say ''men'' can still up their pension contribution and it will still reduce the amount taken into consideration for CSA.

Most ''men'' who up their pension conrtibution do so because their ex took half or most in teh divorce- along with the majority of the house.

By contributing to their pension they are no better off monthly in the present- their accessible income is lower and therefore their present lifestyle has to be lowered

Can''t see how salary sacrifice loophole will be closed under new scheme as it still won''t show as gross income. Salary sacrifice is a tax dodge for companies not employees.

Also pension contribution are allowed under new scheme so still won''t count as income.

MrsMathsisfun wrote:

Can''t see how salary sacrifice loophole will be closed under new scheme as it still won''t show as gross income. Salary sacrifice is a tax dodge for companies not employees.

Also pension contribution are allowed under new scheme so still won''t count as income.

Salary sacrifice loophole wont be closed by gross income scheme it will be opened!

Under net schemes only deductions allowed are tax, NI and pension contributions anything else is added back in. In fact if you take part in salary sacrifices under net scheme your assessment will go UP as you will pay less tax and NI.

Under gross scheme salary sacrifices will no longer be visible. All they will see is your taxable income for the year as shown on your P60 so in theory you can salary sacrifice down to the minimum wage!