Personal Group's salary sacrifice scheme not in jeopardy despite Autumn Statement

24th Nov 2016 15:43

(ShareCast News) - Personal Group, a provider of employee benefits and financial services, said that despite Chancellor Philip Hammond's clamp down on salary sacrifice schemes in the Autumn statement, its 'Lets Connect' scheme will not suffer.Lets Connect is a benefit that offers employees a wide range of home technology products such as tablets, laptops, smart phones and TVs in exchange for a cut in their salary.In his statement on Wednesday, Hammond denounced salary sacrifice schemes as "unfair" and said that from April 2017 employers and employees who use these schemes will pay the same taxes as everyone else.Despite this the company remains fully behind its Lets Connect business and does not believe the anticipated changes will impact the overall competitiveness of its home technology offering with the exception of mobile phones, which only makes up around 10% of the business.The core insurance business of the group continues to perform in line with expectations. Despite a further 2% increase in Insurance Premium Tax due in June next year the board remain confident of the longevity of the product given its importance to many employees around the country.The company remains in-line with expectations for full-year profit and expects to announce itsfinals in March 2017.Chief executive mark Scanlon said: "We welcome the clarity that the Autumn Statement brings to our Lets Connect business as it falls in line with the expectations as we understood them from the consultation published in August this year. The group's salary sacrifice offering becomes much simpler and easier to understand as much of the complexity is removed."The share price rose 1.05% at the close on Thursday.