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Cycle to Work Scheme and Auto-Enrolment

Do the cycle to work deductions affect pension calculation

Hi 

Am going around in cicles with this. I am setting up a cycle to work deduction in Sage (as a negative payment) but there are boxes to tick/untick if it affects the auto-enrolement pension figure. I have tried to google what the correct treatment is but can't find anything specific. My gut feeling is that as it a salary sacrifice it reduces the amount on which the pension fiugure is calculated but should be grateful if anyone out there could confirm this.

Many thanks

Jan

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25th Jun 2018 09:01

When you're assessing someone to see if they need to be auto-enrolled, the calculation is always done on the post-sacrifice amount.

Once you enrol someone into a pension scheme, the basis on which the contributions are calculated depends on the rules of the scheme. Most also use the post-sacrifice value, but some (certain public sector schemes for example) use the substantive pay, which is the pre-sacrifice amount. The pension scheme administrators will be able to tell you which to use.

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26th Jun 2018 17:44

Many (belated) thanks
Jan

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