Fidante Benefits Package

In addition, there is absolutely no advantage in reducing actual pay below the Tax-Free Personal allowance. If earnings do reduce below this level, zero tax relief may apply, and in these circumstances, it would be better to continue with the conventional contribution method.

How much can I contribute via Salary Exchange?

You can exchange as much as you wish, as long as the total Pension contributions are within HMRC limits and your remaining salary is above the prevailing National Minimum Wage.

Can I exchange any future discretionary Bonus Payments too?

Yes – discretionary Bonus payments can also be Exchanged for Pension Contributions. Here, Fidante will generously increase the value of your contribution by a valuable 15%. More details will follow ahead of any future bonus payments.

What will be shown on my payslip as a result of making Salary Exchange contributions?

Your payslip will continue to show your full, pre-exchange Salary. It will also show the deduction for Salary Exchange, the reduced amount of tax and NI payable and your take home pay.

Will I still benefit from income tax relief on my pension contributions with Salary Exchange contributions?

Salary Exchange contributions are paid as employer contributions. You do not receive tax relief on employer contributions. However, you do not pay income tax on employer contributions either, so the result is the same.

What are the tax implications for higher-rate taxpayers?

With conventional Personal contributions, in order to obtain the full amount of higher-rate tax relief (the difference between the basic rate and higher-rate of tax) on your contributions, you are required to complete a tax return or to submit a claim direct to HMRC.

With Salary Exchange contributions, you are not required to do this as you will immediately receive the full amount of tax relief due via your payroll.

Please note that if your tax code has previously been adjusted to credit higher rate tax relief linked to conventional Pension contributions, you should contact HMRC to advise that personal contributions are to stop.

Will making payments using Salary Exchange represent a change to my terms and conditions?

Yes. This is because your contractual pay is reduced by an equivalent amount to the Pension Contributions you wish to exchange. You will not pay any personal contributions into the Pension Scheme. However, Fidante will provide you with a benefit of additional pension contributions into the Pension Scheme. You will not be liable for National Insurance or Income Tax on this benefit.

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