Pension salary sacrifice increase following new annual allowance.Which dates matter?

[ekim]

Yep - with Paystream it’s not the deduction date that counts, I recently clarified that with their contractor care team. It’s the date they make payment to the pension provider which is around the 19th of the month following the payslip date. So my February 2023 earnings are on the 31st March payroll and are paid into pension on 19th April, and so become subject to the increased £60K annual allowance

[sreed]

If you want to increase your pension salary sacrifice deduction rate with an umbrella due to the increase in the annual pension allowance to £60k (not due to an individual 'lifestyle change').
Are there any rules around when you can apply the new deduction rate, in relation to potential new tax year cutoffs?

Specifically how this relates to deduction dates (done every week from earnings paid, with reduced NI and tax applied at that point) and/or pension contribution payment dates (monthly payment of accumulated deductions paid into your SIPP).

For example, there are 2 weekly (Friday) payment dates left in this tax year (excluding tomorrow), but your next pension payment date is not until say mid-April (in the new tax year).

Is it allowable to apply an increase in pension salary sacrifice deductions from earnings received in the next 2 weeks onwards (prior to the new tax year), as these won't actually be received/paid into your pension until the new tax year?

Can't find any clear answers on this.

Anyone facing a similar decision?

Thanks

This is what Paystream sent me today. They do ask to get in touch if I want to change the SS amount for the new tax year, but I'm assuming they'll only apply any changes from the 2023/24 Week1 payslip.

[eek]

If you want to increase your pension salary sacrifice deduction rate with an umbrella due to the increase in the annual pension allowance to £60k (not due to an individual 'lifestyle change').
Are there any rules around when you can apply the new deduction rate, in relation to potential new tax year cutoffs?

Specifically how this relates to deduction dates (done every week from earnings paid, with reduced NI and tax applied at that point) and/or pension contribution payment dates (monthly payment of accumulated deductions paid into your SIPP).

For example, there are 2 weekly (Friday) payment dates left in this tax year (excluding tomorrow), but your next pension payment date is not until say mid-April (in the new tax year).

Is it allowable to apply an increase in pension salary sacrifice deductions from earnings received in the next 2 weeks onwards (prior to the new tax year), as these won't actually be received/paid into your pension until the new tax year?

Can't find any clear answers on this.

Anyone facing a similar decision?

Thanks

Don't make things complex

[foxyy]

If you want to increase your pension salary sacrifice deduction rate with an umbrella due to the increase in the annual pension allowance to £60k (not due to an individual 'lifestyle change').
Are there any rules around when you can apply the new deduction rate, in relation to potential new tax year cutoffs?

Specifically how this relates to deduction dates (done every week from earnings paid, with reduced NI and tax applied at that point) and/or pension contribution payment dates (monthly payment of accumulated deductions paid into your SIPP).

For example, there are 2 weekly (Friday) payment dates left in this tax year (excluding tomorrow), but your next pension payment date is not until say mid-April (in the new tax year).

Is it allowable to apply an increase in pension salary sacrifice deductions from earnings received in the next 2 weeks onwards (prior to the new tax year), as these won't actually be received/paid into your pension until the new tax year?

Can't find any clear answers on this.

Anyone facing a similar decision?

Thanks