HMRC issues auto-enrolment salary sacrifice guidance

by Jonathan Stapleton

More from this author

22 Jun 2012

  • Comments
HM Revenue and Customs

HMRC HAS ISSUED guidance confirming salary sacrifice pension schemes will be able to meet automatic enrolment requirements

Previously, HMRC required employees entering into salary sacrifice arrangement for pension contributions could not easily revert to their higher salary. A ruling that generally meant employees could not opt out within 12 months, unless it was due to a lifestyle change, without losing all tax and national insurance benefits, Accountancy Age's sister publication Profession Pensions reports.

This conflicted with auto-enrolment regulations, which permit automatically enrolled individuals to opt out as soon as they have joined their pension.

HMRC has resolved this matter by adding pension contributions to the list of salary sacrifice schemes which allow opting out at any time.

Pension contributions now sit alongside child care vouchers, the cycle-to-work scheme and the workplace parking scheme in enjoying this level of flexibility.

Hargreaves Lansdown head of pensions research Tom McPhail explained: "Salary sacrifice arrangements for pensions have just been made more flexible, and can now happily comply with auto-enrolment regulations arriving from this year."

This comes after the industry had lobbied HMRC to clarify the rules on this issue and include auto-enrolment as an exempt benefit – a move the government department had agreed to in April but has only now published guidance (PP Online, 17 April).

The guidance can be found on the HMRC website.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Appointments to University Committees

University of Glasgow 120x60University of Glasgow - Glasgow - unremunerated positions

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.