The following Employment Tax guidance note by Tolley in association with Robert Woodward provides comprehensive and up to date tax information covering:
For more information and guidance from HMRC in this area in relation to coronavirus (COVID-19), see our dedicated Tolley COVID-19 Toolkit .
A salary sacrifice arrangement is a formal agreement under which an employee accepts that with effect from a set date, they will receive a lower taxable salary than previously, and also receive an agreed benefit or package of benefits. Agreements must apply for a minimum period, usually for at least one year.
The two key elements necessary for a salary sacrifice to work are that:
With effect from 6 April 2017, the taxation of certain benefits provided under a ‘optional remuneration arrangement’ as defined by ITEPA 2003, s 69A changed for any agreement effective on or after that date. The guidance and legislation relating to the salary sacrifice itself remains unchanged but this guidance must be read in conjunction with the Optional remuneration arrangements gui
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.