Act now in case budget puts an end to tax perk

Posted by | June 12, 2015 | News

Act now in case budget puts an end to tax perk
Salary sacrifice is a simple way of saving thousands of pounds a year, but it’s under threat in the July budget
A PAY CUT could make you richer —thanks to a popular trick known as salary sacrifice — but experts warn that you should act fast in case the government clamps down on the rules in next month’s “bonus” budget.
Salary sacrifice can save you thousands of pounds a year and is, currently, entirely legal. Essentially it is a salary swap: you amend your employment contract to lower your gross salary, but receive something else in return, which makes you better off.
Workers can save money on everything from childcare vouchers to pension contributions, and high earners can use it to claw back child benefit, worth £1,076 for a couple with one child or £1,788 a year for those with two children

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