PENSION SAVING OPPORTUNITIES
Pensions represent one of the few non-contentious tax breaks still available and employees can benefit in particular through investment by their employer.
The salary sacrifice arrangements can reduce an employee´s tax bill significantly as employers can automatically transfer funds directly from an individual´s contract income into their pension scheme.
Crucially this transfer occurs before the employer´s or employee´s national insurance and income taxes have been deducted which, even for a basic rate taxpayer, could save a 39 per cent tax take. (Higher rate taxpayers save even more).