0:00
Pensions was a big part of this week's
0:02
budget. Yeah. Um they have
0:05
made changes to the salary sacrifice
0:07
scheme. Sounds all very technical and
0:09
slightly dull, but it's actually very
0:12
Yeah. They I mean to be effectively
0:14
speaking, she's ripped it up. So it's
0:16
going to really hit employees quite
0:18
hard. So the whole crux of it is salary
0:21
sacrifice contributions. The most
0:23
popular is pension contributions. It's
0:25
where you sacrifice some of your wages
0:27
into your pension to bring down your tax
0:29
bill, reducing your income and in most
0:31
cases bringing you back under the
0:33
£100,000 threshold. For young families
0:35
in particular, that's quite important
0:37
because if you're under that threshold,
0:39
you keep your childare hours. So
0:41
effectively, you save money. And now the
0:43
chancellor has basically said, we're
0:45
going to put a cap on it. So now you can
0:47
only put £2,000 per tax year into a
0:50
pension contribution through sacrifice
0:52
through sal sacrifice without being
0:54
taxed. So that basically means if you
0:56
put in over that you're going to be
0:58
taxed 8% national insurance
1:00
contributions. Now if you earn over
1:04
you'll be taxed 2%. So that's basically
1:07
what's happening there. So, previously a
1:09
salary sacrifice would have taken your
1:11
pay before tax, before national
1:13
insurance, student loan repayments, all
1:15
of that stuff, put it in your pension
1:17
for you to enjoy later on. But now, you
1:20
can only do that for two grand before
1:22
you start having to pay national
1:28
That is basically what it means. So,
1:29
yep. So, after you put in over £2,000,
1:31
you're going to be taxed at the national
1:33
insurance rates. And reports are that
1:36
the government are trying to rush this
1:38
Yeah. So that's according to reports
1:40
seen this morning. It's not been
1:41
confirmed, but apparently she's going to
1:44
try and rush it through before Christmas
1:47
to try and quell the markets and maybe
1:49
just re reassure them because it's going
1:51
to be coming into effect in April 2029.
1:53
And as we know, that is when the next
1:55
general election is going to be. It has
1:56
to be before the summer. So she wants to
1:58
make sure that they know that yep, we
2:00
are committed to tax rises. they are
2:02
going to happen because there will be
2:03
some nerves around the general election
2:05
So the people the bond markets who lend
2:08
the government money will be slightly
2:10
more at ease if they know it's written
2:13
That's the plan. So yeah, that's the
2:15
whole reasoning behind it according to
2:16
people who have spoken about it from the
