Philip Hammond will this week announce a raid on job perks enjoyed by millions of middle earners, including health checks, gym memberships and mobile phone contracts.
The Sunday Telegraph has learnt that the Autumn Statement will tighten rules that allow workers to forgo part of their salary in return for certain work benefits.
The move, described as a “stealth tax” by critics, will mean employees at big firms across Britain will be forced to pay hundreds of pounds to continue to receive perks they get through work.
The salary sacrifice schemes. The company provides you with whatever, gym membership say, you don’t pay income tax on it, they don’t pay NI.
It’s a not very sensible distortion in the system and as such should go. Pay the cash and let people buy what they want out of taxed income.
The biggest danger with these sorts of twee policies is the temptation it gives to idiots to add more things to the list of eligible items. Each addition just adding yet more distortion to the system. Gives those who would manage society a field day in “picking winners.”