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

IHT shake-up: What will come of SSAS discretionary death benefits?

IHT shake-up: What will come of SSAS discretionary death benefits?

'Essential that issues are addressed and rectified in the draft rules'

Caitlin Southall
clock 17 February 2025 • 4 min read
WBR Group acquires £403m SSAS book from Standard Life

WBR Group acquires £403m SSAS book from Standard Life

Administered SL's SSAS book for more than 20 years

Jenna Brown
clock 13 February 2025 • 1 min read
'Strong case' for automatic consolidation of small pensions, IFS argues

'Strong case' for automatic consolidation of small pensions, IFS argues

Think tank calls on the government to ‘end and reverse’ the proliferation of small pots

Holly Roach
clock 12 February 2025 • 4 min read