HMRC have published the outcome of research they commissioned into the effects of salary sacrifice arrangements on occupational pension schemes. The research carried out by IFF Research on behalf of HMRC looked at employer views and behaviours in relation to salary sacrifice including reasons for take-up or the decision not to offer salary sacrifice for pensions and perhaps crucially the impact of potential changes to tax and NICs reliefs. Of particular interest three hypothetical scenarios were put to employers each of which would represent a change to current arrangements:
Removal of the NICs exemption on amounts sacrificed resulting in employer and employee NICs on those amounts. Based on the example of an employee with annual salary of £35 000 who sacrifices 5% with a matching employer contribution this would result in an additional £242 for the employer and £210...
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HMRC have published the outcome of research they commissioned into the effects of salary sacrifice arrangements on occupational pension schemes. The research carried out by IFF Research on behalf of HMRC looked at employer views and behaviours in relation to salary sacrifice including reasons for take-up or the decision not to offer salary sacrifice for pensions and perhaps crucially the impact of potential changes to tax and NICs reliefs. Of particular interest three hypothetical scenarios were put to employers each of which would represent a change to current arrangements:
Removal of the NICs exemption on amounts sacrificed resulting in employer and employee NICs on those amounts. Based on the example of an employee with annual salary of £35 000 who sacrifices 5% with a matching employer contribution this would result in an additional £242 for the employer and £210...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
