Salary sacrifice & min wage - LTB 064/25 - a freebie?

[Londonsburning]

I had the same 50£ letter from Hmrc two years in a row

Probably something to do with earning too much wealth over and above the threshold elsewhere. HMRC don't send out letters for nothing.

[TopperGas]

After the pay rise is implemented I assume RM will either take the outstanding owed money from the backpay or increase the weekly payments to balance the annual amount.

The letter clearly states "you will not be charged retrospectively for any salary reduction not implemented during this time".

Does it... I have not yet received a letter

Very interesting - I assumed there'd be a clawback too but the letter I received today clearly states exactly what Hitcher has highlighted!

If RM attempted to claw it back could employees then claim they weren't being paid above the NMW in the past? Although unless we get a big pay rise playing double in the future could take staff below the NMW again!

[Perseus]

Wage rise this year = 0.001% over the threshold to prevent the salary sacrifice issue kicking in again.

[mr hil.]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

[Londonsburning]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

What is the purchasing of sick leave cover insurance you mentioned?? Sounds suspiciously like a waste of money.

[Jefferson Starfish]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

What is the purchasing of sick leave cover insurance you mentioned?? Sounds suspiciously like a waste of money.

It pays out if you're on the sick and getting a reduced income.
https://www.citizensadvice.org.uk/consu ... insurance/

[Iva bigredbag]

The main issue here is the fact we are so poorly paid that any tiny changes may bring some employees below the minimum wage which is pitiful as it is.

When I first joined our salary was well above minimum wage, now due to pee poor union deals the minimum wage is basically caught up. I have no doubt the next deal will again be pathetic.

[Londonsburning]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

What is the purchasing of sick leave cover insurance you mentioned?? Sounds suspiciously like a waste of money.

It pays out if you're on the sick and getting a reduced income.
https://www.citizensadvice.org.uk/consu ... insurance/

We get 6 months full pay though. How much does it cost per month as an OPG?

[Jefferson Starfish]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

What is the purchasing of sick leave cover insurance you mentioned?? Sounds suspiciously like a waste of money.

It pays out if you're on the sick and getting a reduced income.
https://www.citizensadvice.org.uk/consu ... insurance/

We get 6 months full pay though. How much does it cost per month as an OPG?

6 months in every rolling 4 years I think, so some people will use that up and insurance could be useful for them.
I have no idea how much it costs.

[Londonsburning]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

What is the purchasing of sick leave cover insurance you mentioned?? Sounds suspiciously like a waste of money.

It pays out if you're on the sick and getting a reduced income.
https://www.citizensadvice.org.uk/consu ... insurance/

We get 6 months full pay though. How much does it cost per month as an OPG?

6 months in every rolling 4 years I think, so some people will use that up and insurance could be useful for them.
I have no idea how much it costs.

Would be smart to know how much income protection insurance costs in the first place as it's probably a rip off since we get sick pay here Jefferson...

[TopperGas]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

My partner's company has just.informed their employees if purchasing leave now takes them below the minimum wage they will no longer sanction it, I wouldn't start celebrating too soon about freebies!

[Londonsburning]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

What is the purchasing of sick leave cover insurance you mentioned?? Sounds suspiciously like a waste of money.

It pays out if you're on the sick and getting a reduced income.
https://www.citizensadvice.org.uk/consu ... insurance/

We get 6 months full pay though. How much does it cost per month as an OPG?

6 months in every rolling 4 years I think, so some people will use that up and insurance could be useful for them.
I have no idea how much it costs.

Would be smart to know how much income protection insurance costs in the first place as it's probably a rip off since we get sick pay here in the UK Jefferson...

[Londonsburning]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

My partner's company has just.informed their employees if purchasing leave now takes them below the minimum wage they will no longer sanction it, I wouldn't start celebrating too soon about freebies!

Minimum holidays for everyone just.informed! Yay

[Jefferson Starfish]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

What is the purchasing of sick leave cover insurance you mentioned?? Sounds suspiciously like a waste of money.

It pays out if you're on the sick and getting a reduced income.
https://www.citizensadvice.org.uk/consu ... insurance/

We get 6 months full pay though. How much does it cost per month as an OPG?

6 months in every rolling 4 years I think, so some people will use that up and insurance could be useful for them.
I have no idea how much it costs.

Would be smart to know how much income protection insurance costs in the first place as it's probably a rip off since we get sick pay here Jefferson...

Perhaps you should look into it then, if you're that interested.

[Londonsburning]

I thought the tax letters we will all be receiving, if you haven't already, is in regards to last years (2023/2024) tax year being 53 weeks so we all owe 1 weeks tax which should be clawed back by the tax man by reducing your tax code accordingly. Nothing to do with RM they could have just taxed the 53rd week without allowing for any tax free amount ( which had been used up over the preceding 52 weeks as normal ) resulting in 20% tax on your gross amount which could have left some people struggling in week 53 last year.

This salary sacrifice holiday could see some benefiting greatly! If you purchase additional leave, a car, a computer and various insurances (dental, sick leave cover etc.) you may not pay these until the pay deal goes through and if no retrospective payments are to be taken it's a win for us 20,000
employees indeed could be getting a freebee

What is the purchasing of sick leave cover insurance you mentioned?? Sounds suspiciously like a waste of money.

It pays out if you're on the sick and getting a reduced income.
https://www.citizensadvice.org.uk/consu ... insurance/

We get 6 months full pay though. How much does it cost per month as an OPG?

6 months in every rolling 4 years I think, so some people will use that up and insurance could be useful for them.
I have no idea how much it costs.

Would be smart to know how much income protection insurance costs in the first place as it's probably a rip off since we get sick pay here Jefferson...

Perhaps you should look into it then, if you're that interested.

So how much does it cost from your pay as an OPG for reduced income sick pay protection then, since you're bigging it up?
Perhaps you should be genuine with your posts on here before posting adverts for insurance companies.