Employees to benefit in NI changes

Salary sacrifice is growing in popularity, both as a way of making pension payments and for other benefits like childcare vouchers. Significant changes to National Insurance (NI), which come into force in April 2008, will result in salary sacrifice becoming even more tax efficient. So many more pension schemes are likely to be set up in this way in future. As a reminder, salary sacrifice is an arrangement between an employee and employer that allows part of a salary, or bonus, to be given up in exchange for a non-cash benefit. Earlier this year the Government announced changes to both t...