The Finance Bill 2017

Salary Sacrifice Schemes: What Next?

Salary Sacrifice Schemes: What Next?

Towards the end of 2016 The Finance Bill 2017 was published, containing provisions intended to eliminate tax advantages that many previously enjoyed through entering into salary sacrifice schemes. Salary sacrifice schemes are agreements undertaken between employers and employees to provide non-cash benefits. However, changes to such schemes, announced in November’s Autumn Statement, mean that employers who have these arrangements in place must prepare to adhere to the new legislation coming into effect from 6 April 2017. The change is due to the government’s concerns regarding an increase in the use of salary sacrifice arrangements, especially as employees effectively pay for the benefit themselves through the reduction in their gross pay. What changes are proposed? Consultation documents ... »