Reeves’s illogical raid on salary sacrifice is an insult to Britain’s workers

11 comments

1. The negative impact on pensions in particular would be even greater if employers assume (probably correctly) that once contributions have been capped, the cap will be lowered further in future years.
   For employees contributing more than £2,000 per year via salary sacrifice, the impact will depend on their earnings level.
   Those earning under £50,270 pay NI at 8pc so will have to find an extra 8pc of any pension saving above £2,000. Perversely, higher earners may lose less because their NI rate (above £50,270) is just 2pc. But in both cases, this will make locking money up in a pension less attractive than simply spending the money now.
   Unfortunately, it matters to all of us if a Budget measure reduces the level of pension saving.
   At a ‘micro’ level, even the Government thinks that around 14 million of us are not saving enough for a decent retirement, and changes like this will only make the problem worse.
   And at a ‘macro’ level, the Government keeps telling us that investments by massive pension funds are key to the economic growth which we all want to see. Less money going into pensions means less money for growth.
   Technical Budget changes like this rarely grab the headlines on the day and many voters will be unaffected, at least for now. But if the Government really does want us all to save more for our retirement and to use pension money as a source of growth, raising the cost of saving into a pension is a strange way to show it.

2. What’s illogical is the billions the treasury have lost and will continue to lose due to Brexit that the telegraph championed.

3. Can we just wait for the budget before being outraged. This constant drip, drip, drip of possible and often improbable tax changes from both sides and the middle is getting really tiring.

4. Isnt the tory graph facing bankruptcy? Bit rich to preach economics when your business is fucked.

5. Can we stop posting paywalled articles or copy it into a comment.

6. Fuck me the telegraph have really gone to town on making shit up for this budget. Whatever happens they can claim they were right because the have thrown everything at the wall to see what sticks

7. What percentage of Brits can afford to make thousands in salary sacrifice? That’s just another way for the wealthy to avoid taxes.

   How about proper state pension tied to earnings like other countries have insted of siphoning everything off into private funds and stock market to rip us off?

8. Labour are dripping the possible outcomes to see how voters react. They haven’t got a clue what they are doing or the impacts of what they tax. Just winging it at this point

9. No it’s not, it’s just a tax perk.

10. Why not target profit and income not earned through work? Close down the LLP loop holes? Stop the evacuation of profit to overseas companies… Like the Telegraph does? 

11. Torygraph stirring again

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