The Government will “actively monitor” the impact of salary sacrifice schemes on tax receipts.
In today’s Budget, the Government expresses concern over the growth of salary sacrifice schemes.
The Budget document says: “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 these schemes and their effect on tax receipts.”