Warning on salary sacrifice rule change

A former pensions minister claims the Government could target salary sacrifice in an effort to claw back lost tax revenues.

Millions of employees choose to sacrifice part of their gross salary in exchange for a wide range of services and goods, including pensions, childcare vouchers, bikes and cars. However, Steve Webb has warned that the Conservative Government may be tempted to look at recouping some of the £15 billion avoided in national insurance contributions (NIC) in its first budget.