In a Budget rammed with small tax rises, Laura Suter, director of personal finance at AJ Bell, gives tips and advice on how to mitigate the worst of the changes
The chancellor unleashed £26bn of tax rises on the public, with much of it landing at the feet of savers, investors and workers.
While there’s no doubt that tax increases are coming, there are clever ways to mitigate the impact of this tax tsunami. Making smart moves before some of the changes come into effect, while also getting the most out of the tax breaks that remain, will put you on good financial footing to weather the storm.
1. Don’t ditch salary sacrifice
The National Insurance perks of using salary sacrifice for pensions will be capped at £2,000 per year from April 2029. But whatever you do, don’t stop your pension contributions.
Despite the NI savings being limited, what you pay in will still be exempt from income tax and workers can still enjoy pension tax relief up to their marginal rate of income tax.
