Salary Sacrifice Tax Saving Benefits To End
Salary sacrifice is a way of reducing tax and national insurance contributions for both employers and employees.
Last Wednesday the Government finished its consultation on limiting the range of Benefits-in-Kind (BiK) that attract these salary sacrifice tax and NIC savings.
Any changes are likely from April 2017.
It is believed that half a million company-car drivers face higher tax bills because of the proposed changes. If you have BiK/Salary Sacrifice scheme and have a concern, then speak to us and we'll point you in the direction of a knowledgable accountant.
In the meantime, we advise you not to expand your existing offer of benefits to potential/existing employees.