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Salary sacrifice and Pensions - are they compatible?

Salary sacrifice and Pensions - are they compatible?
Tuesday, 09 October 2012 07:10

Having already confirmed that salary sacrifice arrangements were compatible with automatic enrolment, HMRC has also confirmed that a salary sacrifice scheme can also work in tandem with those employees who are members of pension schemes on a contractual basis.

In an updated Q&A section on their website HMRC have clarified that salary sacrifice could

  • be used in conjunction with auto enrolment 
  • accommodate opt outs
  • where opting out a refund of salary (subject to tax & NI) can be made

For more information about auto enrolment and how it may affect your payroll contact us for your free "Bluffers Guide to Auto Enrolment"

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dataplan payroll services