Until October 1985, when the cap was removed from employer contributions, there was little incentive for avoidance of contributions, since all classes of compulsory contribution were limited. However, once the contributions cap was removed, employers soon began to exploit the exemptions offered in the Contributions Regulations to escape a contribution that brought no benefits.

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

No subscription?

Contact us to discuss your requirements.