All the ways you can still cut your income tax bill if Reeves scraps salary sacrifice

Rachel Reeves is reportedly planning a £4bn cut to pension tax breaks in the Budget that could cost workers £210 a year.

The Chancellor is said to be preparing to strip back tax cuts offered to staff and employers that pay money into workplace pensions as she looks to plug a hole in public finances, The Telegraph reported.

“Salary sacrifice” schemes would be targeted, which allow money to be put into retirement pots before it is subject to any income tax or national insurance (NI).

Reeves is looking at restricting the maximum amount that can be put into a pot tax-free.

Employers benefit from lower employer national insurance contributions (NICs) when staff use these schemes, because the tax is only applied to pay left over after pension contributions.

Analysis obtained by The Te