Government will 'actively monitor' salary sacrifice

clock

HM treasury will "actively monitor" the effect of salary sacrifice on tax receipts and has left the door open to cutting back on the benefit.

Many rumours and fears of action targeting salary sacrifice were circulated before today's Summer Budget announcement, but it appears nothing has been undertaken yet. However, HM Treasury has clearly been alerted to the "rising" cost to the taxpayer of salary sacrifice schemes. The Budget document noted: "Salary sacrifice arrangements can allow some employees and employers to reduce the income tax and National Insurance that they pay on remuneration. "They are becoming increasingly popular and the cost to the taxpayer is rising. The government will actively monitor the growth of th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pension allowance changes fuel increase in chunky contributions

Pension allowance changes fuel increase in chunky contributions

‘The rule changes have breathed fresh life into pension planning'

Jenna Brown
clock 26 February 2024 • 2 min read
Finance Bill LTA provisions a 'rushed job' ahead of April

Finance Bill LTA provisions a 'rushed job' ahead of April

LTA provisions remains a concern in the latest Finance Bill

Jonathan Stapleton
clock 23 February 2024 • 1 min read
FCA warning for duo over 'seriously flawed' DB transfer model

FCA warning for duo over 'seriously flawed' DB transfer model

Two warning notices have been issued to unnamed individuals

Hope Coumbe
clock 21 February 2024 • 1 min read