24 November 2016
Many employers have taken advantage of the tax and national insurance benefits that arise from having a salary sacrifice scheme in place for its employees. During the Autumn Statement the Chancellor announced that there would be major changes to this scheme as benefits would now seek to be taxed as cash income. The exemptions that will remain are benefits such as pensions, childcare, cycle to work and ultra-low emission cars.
Any schemes that are currently in place and set up before 1 April 2017 will be protected for up to 1 year with the exclusion of the provision of cars, accommodation and school fees which will be protected until April 2021.
If your business have a salary sacrifice arrangement in place please ensure that you obtain professional advice on how this should be dealt with in the forthcoming periods.