He stated that “There is no question that there was a social care crisis that had to be solved, because it’s one of the biggest areas of financial planning that concerns people most. They are worried that their wealth will be lost and that their legacy to their families may be diminished.”
Given the UK’s ageing population, the crisis will only get worse. We had to do something. It remains to be determined whether yesterday’s announcement of an increase in National Insurance and Dividend Taxes by 1.25 percent will solve the problem. Future tax increases cannot be ignored.
The pledge to not raise taxes was broken and there is now a fear that more tax increases could be coming. For a while now, rumors of possible changes in Capital Gains Tax, Inheritance Tax or pension legislation circulated. Yesterday’s announcement made me fearful that the next steps in National Insurance’s rise will result in changes intended to prevent’salary sacrifice.
Smith explained how salary sacrifice works. “A salary-sacrifice arrangement means that an employee is willing to give up a portion of their income in return for benefits provided by the employer. The main benefits are that both the employee and employer save Income Tax and National Insurance on the amount of salary lost.
Publited Fri, 10 Sep 2021 at 06:52:00 +0000