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
-
Payment deadline for corporation tax
-
HMRC targets undeclared consultancy income in the medical sector
HMRC is writing to people working in the medical sector where information supplied by private healthcare providers suggests that consultancy fees may have been omitted from their tax returns. Recipients have 30 days to check their position and respond. What should you do if you get a letter?
-
MONTHLY FOCUS: BUSINESS AND AGRICULTURAL PROPERTY RELIEF: WHAT DO THE NEW IHT RULES MEAN FOR YOU?
The inheritance tax treatment of businesses and farms changed fundamentally from 6 April 2026. The amount that can qualify for 100% business property relief and agricultural property relief is now capped, potentially leaving families with a significant tax bill for the first time. What has changed, and what should business owners and farmers be doing about it?
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.