[Solved] CSA Payments following salary sacrifice

As far as I know, on CSA2 they will only take any changes to salary into account if there's at least a 25% difference. They should look at your situation during an annual review and a recalculation would be done at that point.

Have a read through these CSA guidelines, you may find the information you need there

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@benefits/documents/digitalasset/dg_198849.pdf

Thanks, but it's a little different with the CSA, my case has not went to CMS as yet. CSA calculation is on nett take home pay, I'm just wondering if my post salary sacrifice is what they would use to calculate

Salary sacrifice reduces your GROSS salary (before tax is calculated, etc). Therefore this reduces the amount the new gross scheme CMS calculation would take as income.

Since GROSS salary changes, (because you have sacrificed your salary) the net income will change (reduce), by definition.

There are some limitations - but generally, as long as the salary sacrifice is correctly administered (i,e Police, NHS, etc, will probably have correctly administered schemes) schemes "registered" with HMRC, then it should be allowed.

This is because - when someone takes salary sacrifice - the employee is no longer legally entitled to receive those cash earnings - so they have not been diverted, etc. As a result CSA (old scheme and new) would have to take them into account.

Is that true THL? I know the diversion of income was a reason for variation under CSA, but the CSA did allow payments into pension to be deducted, and the salary sacrifice is a perfectly legitimate way of doing it - in fact it doesn't reduce the net by any more than a straight payment into pension from salary would do (which is allowed) but the benefit of salary sacrifice is that the employee (and employer) get the benefit of the national insurance being reduced without a cost to anyone.