- Date: Monday 27th March 2017
- PDF: Download
From 06 April 2017 Employers will have to review their salary sacrifice arrangements, since tax advantages for some of them will be removed.
Agreements NOT affected by the changes:
- Pension saving into a registered pension scheme
- Employer provided pensions advice
- Employer-supported childcare
- Cycle to work schemes
- Ultra Low Emission Cars (ULEVs)
- Those already in contracts for benefits in kind involving salary sacrifice will be protected for the length of that contract, subject to final backstop dates.
Agreements no longer available under a salary sacrifice agreement:
- Income Protection – current contracts are protected but future increases will be subject to tax and NI.
- Life Assurance – New schemes will now be treated as a taxable benefit for future contribution increases and pay-outs.
- Any taxable benefits in kind such as cars, phones, white goods or parking permits.
There will also be a revaluation of benefits in kind, company cars in particular and a new P11d format will be released in April 2018.
Source: SSG - Manuela Grossmann