Forums

FILTER BY CATEGORIES:

If I auto-enrol employees on a sacrifice basis, will allowing them to revert to higher cash pay on opting out create a tax charge?

Posted 5 years ago at 14:38

No. HM Revenues & Customs has clarified that employees who opt-out of salary sacrifice or out of pension savings will not be penalised. Their employment contract will be amended as a consequence of them reverting to higher cash. http://www.hmrc.gov.uk/

Add your answer

you are right

Posted 2 months ago at 9:34 by careerz 360

Login or Signup to post and comment

If you are a professional helping your client with auto-enrolment, Pension PlayPen can help you select a workplace pension scheme, produce a comprehensive suitability report and provide an actuarial certificate, all at a fraction of the price of traditional methods. With our easy to use Choose a Pension service you can keep your clients compliant in a highly cost effective way.

Learn more

Follow us on:

We think it's important you understand the strengths and limitations of our website to ensure you get the best use from it. We provide the materials contained via our website for general information and guidance purposes only and include third party content and some journalistic comment which should be considered with regard to your own specific circumstances. We provide our website in good faith but we can't and don't warrant the completeness, truth or accuracy of all the information or other content or postings found on our website, or their usefulness for any particular purpose. Always remember that anyone can post on our forums, so it can be very different from our opinion. The information contained on our website sets out our understanding of any chosen subject matter at the time of first publication. It is not intended to constitute advice or guidance upon which you may rely and is not a substitute for professional, financial or tax advice based on your circumstances. All users are advised to seek independent professional advice before acting on anything contained in our factsheets or other material contained on our website. Always do your own research on top to ensure it's right for your specific circumstances. We provide links to other websites, but we can't be responsible for their content. Comparison on plans is intended solely for use by employers and not by individuals. Nothing in this website constitutes investment advice or a Financial Promotion (as defined) under the Financial Services and Markets Act 2000 and this site is intended for use by employers only and not individuals. Neither Pension Playpen Ltd or First Actuarial LLP are authorised by the Financial Conduct Authority and take no responsibility for any actions taken by users of the site other than as covered in the terms and conditions of website use and the privacy policy. This is based on understanding of current legislation and taxation which may be subject to change. Note that the value of investments can go down as well as up. Please read the Full Terms & Conditions, Privacy Policy, Cookies and Q&A.

Forums

FILTER BY CATEGORIES:

If I auto-enrol employees on a sacrifice basis, will allowing them to revert to higher cash pay on opting out create a tax charge?

Add your answer

You have been inactive for more than 4 hours