Workplace Pensions
The question
To ask the Chancellor of the Exchequer, what modelling she has undertaken on applying National Insurance to salary-sacrificed pension contributions above £2,000; and whether she has made an assessment of the potential impact of that measure on pension contributions among middle-income workers.
Answered by Torsten Bell
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
Individuals earning below £30,000 making pension contributions through salary sacrifice are overwhelmingly protected by a £2,000 cap, with few (c. 5%) making salary sacrifice contributions above this threshold.
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