Salary sacrifice changes to see 2.8 million cut back pension saving

Additionally, the FOI revealed that this includes 666,000 individuals who earn less than the upper earnings limit of £50,270 a year, with this tranche generally expected to represent basic rate taxpayers. The Office for Budget Responsibility (OBR) previously estimated that it is lower earners who will reduce their contributions by the most in its paper Costing of charging NICs on salary-sacrificed pension contributions. The government announced plans to apply a £2,000 cap to the amount of employee pension contribution which can be paid through ‘salary sacrifice' whilst avoiding employ...