This budget, like all others, has been used as an opportunity to bring clarity to a few areas of ambiguity.
One such idea that has been kicking around for a few months in the industry (and heavily promoted by at least one of the best known names in the financial services industry) seems to have received special attention. Please see the attached link:
It would be expected that this concept would have been largely used as a tax planning trick for those with an already high level of pension saving, who were seeking to avoid both the maximum pension saving rules, and their share of the taxation burden.
So, if you were being seduced by the idea of sacrificing salary to avoid both Tax and National Insurance, and then applying it to ANOTHER family member’s pension scheme, this option is now (quite rightly) not allowed!
Finally, it’s worth highlighting that this does NOT impact on Salary Sacrifice for use in the employee’s own pension savings though. So no change here for the vast majority of employers and employees that use this option.
Best regards
Steve
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