Negatives of dropping back into 20% tax?
Negatives of dropping back into 20% tax?
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Discussion

DickP

Original Poster:

1,177 posts

180 months

Wednesday 24th January 2024
quotequote all
Hi,

I’m considering a few options through salary sacrifice that I would benefit from which has the potential of dropping me back into 20% tax band (but only just).

Are there any significant negatives that I need to be aware of when considering?

If it makes any difference my employer pension contribution percentage is capped at 50k so is not likely to be affected.

Thanks,

Eric Mc

125,742 posts

295 months

Wednesday 24th January 2024
quotequote all
Less cash to spend.

Consigliere

412 posts

71 months

Wednesday 24th January 2024
quotequote all
Eric Mc said:
Less cash to spend.
exactly what he said

DickP

Original Poster:

1,177 posts

180 months

Wednesday 24th January 2024
quotequote all
Okay straightforward then! Thanks!

Winchmore

10 posts

50 months

Wednesday 24th January 2024
quotequote all
Might affect the amount your could borrow on a mortgage.

TwigtheWonderkid

49,158 posts

180 months

Wednesday 24th January 2024
quotequote all
May effect your death in service benefit. Check with the insurer (not with your HR department, who often think they know the answer but don't).