US EditionPensions at risk as HMRC eyes salary sacrifice schemes in Autumn Budget
- HMRC recently published research exploring employer responses to potential changes affecting salary sacrifice schemes for workplace pensions in the UK.
- This research, commissioned under the previous government and conducted from May to August 2023, evaluated options to reduce tax and National Insurance reliefs on pension contributions.
- The study surveyed 51 firms, with 41 offering salary sacrifice, and found most employers viewed proposals to remove or limit reliefs negatively, fearing increased costs and reduced pension contributions.
- An average worker earning £35,000 and contributing 5% via salary sacrifice could face a £560 annual increase in tax and National Insurance, while employers might incur an extra £241, highlighting substantial financial impacts.
- If implemented, these changes could reduce pension savings and employer participation, while the Treasury insists that such alterations remain speculative despite the pressure to raise revenue in the upcoming Autumn Budget.
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Total News Sources16
Leaning Left1Leaning Right3Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 17%
C 33%
R 50%
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