www.bloomberg.com
From 2029, the UK will introduce National Insurance contributions (NICs) on pension contributions made through salary sacrifice schemes, impacting earnings over £2,000 annually. Currently, these contributions are exempt from NICs, offering tax advantages. This change aims to align NIC treatment with traditional pension contributions. The move will likely affect employers and employees utilizing salary sacrifice for pension savings, potentially reducing its attractiveness as a tax-efficient strategy for higher contributions. This new levy will contribute to government revenue.
