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Chartered Certified Accountants
and Business Advisors

01530 267320

Salary Sacrifice – Existing Schemes Safe for Now!

From the 6th April 2017, HMRC reported that the tax and NI advantages would stop for most salary sacrifice schemes.  This was to be enforced for new and most existing schemes. However, HMRC have issued new guidance following the Autumn Statement saying that there will be limited protection for some existing schemes.

HMRC says that the new rules will affect types of salary sacrifice schemes differently:

  • Pensions, pension advice, childcare, cycle to work and ultra-low emission cars will be exempt.
  • All arrangements in place before April 2017 will be protected for up to a year.
  • Arrangements in place before April 2017 for cars, accommodation & school fees will be protected for up to 4 years.

These amendments will allow employers to phase out or negotiate with their employees the terms of the salary sacrifice schemes.  Now is a good time to start planning ahead and talking to our employees

If you would like further advice on salary sacrifice schemes, please contact the team on 01530 267 320 or email info@senceaccounting.co.uk

01 Mar 2017

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