New Forest Ribbon
New Forest

16/11/2017

HMRC have updated their guidance on salary sacrifice schemes

The rules for salary sacrifice arrangements changed with effect from 6 April 2017 and HMRC have updated their guidance for employers. Apart from 5 exceptions the amount assessed as employment income for new salary sacrifice arrangements is now the greater of the salary foregone and the taxable benefit as set out in the tax legislation.

Fortunately, the two most common arrangements are unaffected by the changes – childcare vouchers and pension contributions. The HMRC guidance reminds us of the importance of amending the employee’s contractual salary before the next salary payment. Remember also that the employee’s salary cannot be reduced below National Minimum Wage.

For further information on Salary Sacrifice Schemes, please contact Alan Rolfe on 023 8046 1200.

Latest Tweets

Even though it is still unclear, the UK will leave the EU at 11pm on 31 December 2020 and businesses need to be ready for changes in the way they trade with the EU http://ow.ly/76V450BR8Ze

It's been reported that ministers are considering halting plans to implement the planned national living wage (NLW) increase next Spring, as a result of the pandemic http://ow.ly/fEX450BR8Ge

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.