Government rushes through NI cap on pension salary sacrifice
The government has already drafted legislation to impose a £2,000 limit on NI exempt pension contributions under salary sacrifice arrangements. What else do we know?
Despite the limits to the amount of salary employees can sacrifice in exchange for tax free employer pension contributions not coming into force until April 2029, the government has already published the National Insurance Contributions (Employer Pension Contributions) Bill. According to media reports, this is due to the government wishing to "reassure the markets" that it is serious about introducing the cap, which is by and large another NI hike for employers.
The Bill does not tell us how the £2,000 cap will operate in practice, e.g. if an individual has two jobs or changes jobs part way through a tax year. It is understood that there will be a consultation in due course to decide on the details and operation of the £2,000 limit.
Related Topics
-
What concessions can help your business?
HMRC has been taking away a number of VAT concessions that have existed for many years. Why has this happened and what concessions could still be useful for your business?
-
MONTHLY FOCUS: PROVIDING FURTHER TAX-FREE BENEFITS TO EMPLOYEES
In this further examination of tax and NI free benefits. Providing benefits that are exempt from income tax is a great way to reward employees in a tax-efficient way. Which benefits qualify for tax-free treatment?
-
HMRC urges agents to review excepted estates
HMRC is reminding tax agents to review inheritance tax (IHT) returns submitted for excepted estates following changes introduced from 1 January 2025. The warning follows concerns that some estates may have been incorrectly treated under the new rules. What should you check?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.