What are the investment options available to the employee when an employer contributes to a pension scheme for the employee? Can one invest in US ETFs, mutual funds, and stocks? Does this contribution count towards the £40000 annual limit? Does the national insurance charge then apply on the remainder of the salary? Also, does this contribution count towards tax relief at source for both income tax and the national insurance tax?
Consider the following examples (numbers were calculated from tax.service.gov.uk).
Annual salary: £20000 Income tax: £1498 National insurance: £1260 Total tax: £2758
Annual salary: £60000 Income tax: £11498 National insurance: £5060 Total tax: £16558
Do these mean that if I draw a salary of £60000 I would end up saving in taxes £16558 - £2758 = £13800 if I have the employer contribute £40000 to a pension scheme instead of paying me directly?