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Salary sacrifice an...
 
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Salary sacrifice and cms

 
(@jolly1)
Active Member Registered

Hi

Will increasing my salary sacrifice work place pension reduce my payments?

Or will they take cms payment first then deduct salary sacrifice?

What if I ask my employer to take 100% into salary sacrifice?.

I do not want to support my ex anymore, she deceives the cms as my daughter does not live there. And I want to give my daughter the money direct.

 

 

 

Quote
Topic starter Posted : 22/11/2024 2:55 pm
(@dadmod2)
Illustrious Member

hi,

am not sure on this but many people in this support group have experience with this:

https://www.facebook.com/groups/239699060076601/?ref=share

 

 

ReplyQuote
Posted : 22/11/2024 9:33 pm
(@hisdadness)
Eminent Member Registered

Hi Jolly1

Yes, you can potentially reduce your payments by increasing salary sacrifice into pension, but it’s not straightforward…

1. Your employer will not allow you to sacrifice 100% of your salary. You will need to be earning at least minimum wage. So taking your number of hours a week, multiply by minimum wage (currently £11.44), multiply by 52 weeks. For a 35hr week that would mean £20,820.80 a year.

 

2. The CMS will only consider a reduction in the £ CM you pay if it exceeds 25% reduction from current basis.

 

3. This is the sticking point. If you are successful in reducing your CM payments, the receiving parent may contact CMS and ask for a review. If CMS handler decides that your pension contributions are excessive and deliberately high to reduce CM then they can reverse/recalculate and you will have to pay receiving parent the previous higher rate.

ReplyQuote
Posted : 11/12/2024 3:13 am
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