Philip Swinburn

A salary sacrifice involves an employee giving up a right to receive part of their cash salary in exchange for a defined non-cash benefit. Once a salary sacrifice scheme (also sometimes known as an optional remuneration arrangement) is established, clearance can be obtained from HMRC as to its impact for tax and National Insurance contributions purposes. This is an example letter to be sent to HMRC in order to obtain such clearance. This Precedent is written in partnership with Lewin Higgins-Green of FTI Consulting.

A salary sacrifice involves an employee giving up a right to receive part of their cash salary in exchange for a defined non-cash benefit. This is a precedent letter from the employer to the employee inviting the employee to enter into the salary sacrifice arrangements (also sometimes known as optional remuneration arrangements) and explaining the consequences of such an arrangement on the employee’s contract of employment and the next steps should the employee wish to participate. This Precedent is written in partnership with Lewin Higgins-Green of FTI Consulting.