7th August 2017
It was confirmed in the Autumn Statement that salary sacrifice schemes in respect of certain benefits would no longer be effective for tax and NIC purposes. However, the following benefits can continue to benefit from tax and NICs relief if provided through salary sacrifice;
- Enhanced employer pension contributions to registered pension schemes (and pension advice).
- Childcare benefits (employer-supported childcare and provision of workplace nurseries).
- Cycles and cyclists' safety equipment provided under the cycle to work scheme.
- Ultra-low emission cars.
The limitation took effect for new schemes from April 2017 although arrangements in place before that date will be protected until April 2018 (cars, accommodation and school fees protected, until April 2021). You therefore need to take urgent steps to understand the impact on your monthly PAYE bill and make arrangements to unwind any existing schemes that will no longer be effective.
To find out more contact Tom Penman on 028 9032 3466 or e mail email@example.com