The Martin Lewis Podcast Can salary sacrifice cut student loan & savings tax cost? A Bridesmaid refund! And, state pension tax?
Dec 8, 2025
Dive into financial wisdom as salary sacrifice strategies for lowering student loan repayments are explored. Discover how increasing pension contributions can shift tax brackets and affect savings allowances. A heartwarming bridesmaid dress refund story highlights consumer rights, while Martin discusses the future of tax on state pensions. Plus, he shares his exhilarating experience on Who Wants to Be a Millionaire? and hints at his interest in Celebrity Traitors. Have a burning question? You can ask him anything!
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Use Salary Sacrifice To Change Tax Bands
- Use salary sacrifice to lower your reported pay if you want to change tax-related bands like higher-rate thresholds, personal savings allowance, or child benefit eligibility.
- Only salary sacrifice (employer-arranged reduction of gross pay) can reduce your student loan repayment threshold in practice, not personal pension contributions.
Higher-Rate Threshold Has Hidden Costs
- Crossing the higher-rate threshold has ripple effects beyond marginal tax rate, like reducing your personal savings allowance and blocking marriage tax allowance eligibility.
- Small pension changes that drop you below the threshold can restore several tax allowances and benefits simultaneously.
Bridesmaid Dress Refund And A Love Story
- Sarah used Section 75 and the Financial Ombudsman threat to secure a refund and goodwill payment for a faulty bridesmaid dress bought on a credit card.
- Her online game connection story also credits Martin Lewis for indirectly helping her meet her husband.