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Budget: Govt to monitor cost of salary sacrifice schemes

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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.”

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Comments

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  1. He can only monitor the big firms. He’ll never know the arrangements in smaller more flexible firms. It’s un provable.

    “Hi Fred how would you like your £5,000 rise? £3k in your pay packet and we’ll stuff £2k in your pension – plus the NI savings we will make.

    On the one hand this crafty, devious, venal man tells us he wants us to be a nation of savers and the next does his utmost to thwart that. Tax relief on pensions for high earners, encouragement to ‘trash the cash’ and now this nonsense.

    Makes Crash Gordon look like an amateur when it comes to stealth. He’s like the guy in the circus with 3 cups and a pea – now you se it – now you don’t.

    Believe me I’m no socialist, but a bit of honesty and transparency would make a nice change.

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