Setting up a salary sacrifice arrangement

Produced by Tolley in association with Robert Woodward
Employment Tax
Guidance

Setting up a salary sacrifice arrangement

Produced by Tolley in association with Robert Woodward
Employment Tax
Guidance
imgtext

The key technical points to consider when setting up a salary sacrifice arrangement are considered in the Salary sacrifice arrangements ― overview, Salary sacrifice and national minimum wage, Optional remuneration arrangements, and Salary sacrifice and pensions guidance notes. Set out below are the practical considerations in respect of implementation of the arrangement.

Experience suggests that employers often have a launch date already pencilled in, but if this has not been done it would be sensible to examine when this is practical. In working towards this deadline, employers may wish to consider this typical timetable which can be adapted as required.

Stage one: Disclosure of Tax Avoidance Scheme (DOTAS)

As salary sacrifice schemes may fall within the DOTAS rules, once the design of the scheme is fixed, the employer should seek advice on whether the scheme is notifiable under DOTAS. If it is, a DOTAS disclosure to HMRC has to be made within tight time limits. The timing requirements and consequences for non-compliance are explained in more detail in HMRC guidance and in Simon’s Taxes

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Robert Woodward
Robert Woodward linkedinicon

Employment Tax Manager at Frank Hirth plc


Robert is an expert in UK employment tax matters for employers with UK based employees, including UK employees working overseas, and overseas employees coming to the UK. He has extensive experience of advising clients with regards to PAYE matters, employee benefits and social security as well as employment related payments outside the payroll functions such as termination settlements and payments to consultants and other non-payroll labour.After graduating in Politics and Law from the University of Southampton, Robert started his tax career at HMRC as an employer compliance officer undertaking enquiries into employers' expenses and benefits systems before moving into a large international practice and then into the Big 4. Here he assisted with tax investigations, flexible benefits planning, employment tax compliance and international social security.Robert has presented to various audiences and has had a number of articles published in various magazines on employment tax matters.Robert is a fully qualified member of both the Association of Taxation Technicians (ATT) and the Chartered Institute of Taxation (CTA).

Powered by Tolley+

Popular Articles

Self assessment ― amendments and corrections

Self assessment ― amendments and correctionsOnce a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the

14 Jul 2020 13:37 | Produced by Tolley Read more Read more

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more Read more

Research and development (R&D) relief ― overview

Research and development (R&D) relief ― overviewThis guidance note provides an overview of the research and development (R&D) tax reliefs for companies.See the Research and development tax relief summary diagram which summarises the R&D tax relief.See also Simon’s Taxes D1.401.For a factsheet which

14 Jul 2020 12:22 | Produced by Tolley in association with Will Sweeney Read more Read more