Almost half (49%) of businesses think restrictions are ‘quite likely’ while 45% consider them ‘very likely’, found a survey of mid-market businesses by BDO. Only 1% of respondents thought Rachel Reeves will leave the current tax break alone.
In salary sacrifice schemes, employees forgo part of their salary which the employer pays instead into their pension as an enhanced pension contribution. This arrangement offers national insurance contribution (NIC) savings for both employer and employee, as the sacrificed salary and employer contributions are exempt from both income tax and NIC.