Pension Contributions on Payslip

Rovers25 · Post by **Rovers25** » 30 Sep 2018, 09:21

Could someone please explain to me why on some payslips my pension contributions have been made as a salary sacrifice deduction and are therefore on the left column of my payslip and other weeks they haven't and are on the right column of my payslip? Whilst the different calculations make no difference to the tax paid the National Insurance paid is doubled when in the pension contributions are shown in the right column of my payslip.

heapsy · Post by **heapsy** » 30 Sep 2018, 09:34

Rovers25 wrote:Could someone please explain to me why on some payslips my pension contributions have been made as a salary sacrifice deduction and are therefore on the left column of my payslip and other weeks they haven't and are on the right column of my payslip? Whilst the different calculations make no difference to the tax paid the National Insurance paid is doubled when in the pension contributions are shown in the right column of my payslip.

Sounds like you have fallen out of PSE. You may be paying too much in. There is a limit to how much qulifies for PSE. To work this out, deduct your AVC payments from your BASIC pay. Divide this by your contracted hours. If the figure is LESS than the hourly minimum wage, £7.89 I think, then you need to reduce your payment. I am paying into Bonus plan and Flexi plan, a total of £118.88, so I'm close to the limit.

Rovers25 · Post by **Rovers25** » 30 Sep 2018, 10:05

Thanks for the reply, I'll have a closer look at this. I'm currently paying £125 into my AVC and I've just signed up for the maximum amount for the share plan, so I'll need to review my contributions, as no point in paying the extra NIC's.

heapsy · Post by **heapsy** » 30 Sep 2018, 10:30

Rovers25 wrote:Thanks for the reply, I'll have a closer look at this. I'm currently paying £125 into my AVC and I've just signed up for the maximum amount for the share plan, so I'll need to review my contributions, as no point in paying the extra NIC's.

I didn't go into the share scheme this time, due to the effect on PSE. I knew it would cause an issue. Instead I diverted the money I was no longer paying into my S&S ISA. More flexibility and options when I retire. I've got shares in several companies, some of which have taken a hammering, others are doing very nicely. I intend to use everything I've got to give me more choice, part time (not at RM) or early retirement.

Hawkey99 · Post by **Hawkey99** » 30 Sep 2018, 11:20

Hi heapsy,

Have a look at Genel Energy which seems to be a very low debt company with a massive free cash flow. May be worth considering.

This is not financial advice of course.