Budget 2016 - PwC comments on salary sacrifice

Published at 14:38 PM on 16 March 2016

On the announcement that the Government is considering limiting the range of benefits that attract income tax and NIC advantages when provided under salary sacrifice schemes.

John Harding, employment tax partner at PwC, said:

"This announcement is not a surprise as HMRC has been looking at salary sacrifice with increased interest over the past year. While the devil will be in the detail it's clear that when it comes to salary sacrifice HMRC take a view that there is a "Good, the Bad and the Ugly". Employers will be delighted to see that pension savings, childcare and cycle to work are clearly in the category of the "Good" salary sacrifices. However, we are suggesting that employers with wider salary sacrifice arrangements and flexible benefit schemes take the time now to review what they are offering to ensure that the benefits do not fall into HMRC's "Bad" salary sacrifices and that they continue to operate as intended and are not deemed "ugly" by HMRC."


Note to editor:

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