Tel: 01736 795753
This email address is being protected from spambots. You need JavaScript enabled to view it.

Salary sacrifice changes from April 2018

Source: HM Revenue & Customs | | 19/12/2017

The tax and NIC advantages of certain benefits provided as part of a salary sacrifice arrangement were removed from 6 April 2017. The new rules effectively remove the Income Tax and employer NIC advantages of certain benefits provided as part of salary sacrifice arrangements such as mobile phones and workplace parking.

When the changes were introduced it was confirmed that all arrangements in place before April 2017 will be protected for up to a year. This means that current contracts that remain under the pre-2017 rules will fall under the new rules from April 2018. The April 2018 deadline is extended until April 2021 for cars with CO2 emissions above 75g/km, accommodation and school fees. Where an existing contract is varied, renewed or modified then the new rules immediately begin to apply.

The following benefits are not currently affected by the new rules:

  • Employer provided pensions and pensions advice
  • Childcare vouchers
  • Employer provided childcare or workplace nurseries
  • Bicycles and cyclist safety equipment including cycle to work schemes, and
  • Ultra-low emission cars, below 75g/km

Planning notes

Employers and employees are still free to use salary sacrifice, but with the tax and Class 1A NICs advantages removed. Also, employees can reimburse their employer for the cash value of any benefit, after the end of the relevant tax year.



Search Archive


Latest News

Tax Diary May/June 2018
18/04/2018 - More...
1 May 2018 - Due date for corporation tax due for the year ended 30 July 2017. 19 May 2018 - PAYE

Renewing tax credit claims
17/04/2018 - More...
Families and individuals that receive tax credits should ensure that they renew their tax credit

How much does Class 4 NIC cost?
17/04/2018 - More...
There are currently two types of national insurance contributions (NICs) payable by most

Search

Our Address

Greenwood Wilson
The Old School
The Stennack
St Ives
Cornwall
TR26 1QU

Contact Us

tel: 01736 795753
fax: 01736 798642
This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login