HMRC clarifies its position on the interaction between salary sacrifice and auto-enrolment

Pension obligations on employers in relation to auto-enrolment are being introduced, on a phased basis, from October 2012. One concern for employers about auto-enrolment relates to its interaction with HMRC rules on salary sacrifice.

‘Salary sacrifice’ occurs where an employee, with the agreement of their employer, ‘gives up’ part of their salary in return for a non-cash benefit (e.g. an employer’s pension contribution). This is advantageous from a tax perspective because the salary falls and so there are savings in national insurance contributions for both the employee and the employer…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

  • Money 317

    Crunch boom

    Financial disputes are starting to dominate the English courts as the long-awaited fallout from the downturn finally comes to town

View more analysis from The Lawyer


5 New Street Square

Turnover (£m): 228.00
No. of Lawyers: 860
No. of Lawyers (Asia Pacific): 79
Offices (Asia Pacific): 3