HM Revenue and Customs (HMRC) has published new research regarding the removal of tax exemptions for salary sacrifice schemes linked to workplace pensions. This study, which explores employers’ perspectives on the current salary sacrifice system, sheds light on potential changes in policies that could significantly impact employee pensions.
Key Points
- HMRC’s research reveals employers’ attitudes towards tax exemptions for salary sacrifice in pensions, which was completed in January 2024 but published recently.
- The study involved interviews with HR and finance professionals at 41 companies offering salary sacrifice pensions.
- Three hypothetical scenarios were evaluated related to potential changes in tax exemptions.
- Employers had mixed reactions, with the second scenario causing particular concern over the viability of continuing salary sacrifice schemes.
- Experts suggest that reducing these exemptions could lead to decreased employee pension contributions, putting retirement savings at risk.
Why Should I Read This?
If you’re involved in HR or finance, this article is a must-read! The implications of HMRC’s research could reshape how salary sacrifice schemes operate, affecting employee benefits and pension plans. You’ll definitely want to stay ahead of these potential changes to prepare your company and workforce effectively!