Salary sacrifice schemes favoured by many employers

Almost half of mid-market businesses are considering salary sacrifice schemes as a means of mitigating the impact of Budget tax changes coming into force from April a new survey has found.

BDO’s survey of 500 mid-market businesses found that a similarly sizeable proportion (44%) said they would look to outsource or offshore work. Almost a quarter reported that they would look to reduce or scrap planned pay increases or bonuses while 21% said they would reduce hiring.

Overall 95% of respondents said they were planning to take at least one action in response to the imminent rise in employer NICs announced at the Budget.

Caroline Harwood head of employment tax at BDO said: ‘There is no silver bullet but clearly salary sacrifice schemes for things like pensions private healthcare electric vehicles or cycle to work schemes – which...