Salary sacrifice arrangements under scrutiny
Requests for approval of corporate salary sacrifice schemes have risen steadily for many years and it appears some more unusual benefits may be seen less favourably in future. Pension, childcare and cycle to work benefits seem to be specifically encouraged, but the Government is looking to limit the range of benefits allowed under such schemes. Car schemes in particular may be targeted.
Supporting documents from The Chancellor’s budget speech suggest the advantageous tax treatment of benefits-in-kind, given as part of a salary sacrifice arrangement, is subject to review.
The government… is concerned about the growth of salary sacrifice schemes
pension saving, childcare and health-related benefits such as Cycle to Work should continue to benefit from income tax and NICs relief