How your pension salary sacrifice works – and what HMRC tax changes would cost you

Adding slightly more to your pension contributions, if you get a raise, for example, can have a material impact later down the line - (Getty/iStock)

The publication of government research undertaken by HMRC around changes to workplace pensions has caused a stir, with the suggestion that the salary sacrifice scheme used by many working people in the UK might be set for an overhaul.

This research questioned how businesses felt about prospective changes that would see pension contributions subject to income tax and national insurance payments, resulting in an annual cost of up to £560 for employees and £241 for employers, based on an average £35,000 salary.