Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Govt reportedly considering introducing a £2,000 salary sacrifice annual cap

clock • 4 min read

Joseph Warne shares his concerns about potential changes to salary sacrifice being considered by Rachel Reeves in her upcoming 26 November Budget...

Rumours surrounding the UK government's potential reform of the salary exchange (or salary sacrifice) scheme are causing growing concern among employers, pension providers, benefits providers, and employees alike. The proposal, reportedly part of wider efforts to raise short-term tax revenues, could have unintended and long-lasting consequences for workplace benefits, private healthcare provision, and even the NHS itself. The proposal originates from HM Revenue & Customs' (HMRC) 2023 sample survey of 41 employers who offered a salary-sacrifice arrangement for pensions and ten employer...

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