Government will 'actively monitor' salary sacrifice

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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...

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