Save thousands with pensions

摘要

Employers and staff could be missing out on tax-free income depending on the type of pension scheme the company operates. A 'salary sacrifice' scheme means pension contributions are taken from an employee's gross salary and no tax or National Insurance is deducted. Basic tax payers can save about 30 per cent more and employers also save money as they do not have to pay NI on this contribution. According to benefits provider B&CE Benefit Schemes, two-thirds of employers are missing out on millions of pounds worth of savings by not using salary sacrifice arrangements. These can be worth as much as £10 million a year for the largest employers and tens of thousands of pounds for smaller firms. But when applying for a mortgage, for example, the total salary before the sacrifice (or 'nominal' salary) can still be quoted. B&CE Benefit Schemes' chief executive Brian Griffiths says: "There has never been a more crucial time to find all sensible ways to reduce costs and this is a useful way to save money.