Salary sacrifice clampdown on car schemes from April

Chancellor Philip Hammond has confirmed plans to clamp down on the tax advantages of salary sacrifice and benefit in kind schemes, but there is to be an exemption provided for low emission vehicles which was not included as part of the original consultation proposals.

The tax and employer national insurance contribution (NICs) advantages of salary sacrifice schemes will be removed from April 2017, except for arrangements relating to pensions (including advice), childcare, cycle to work and the provision of ultra low emission vehicles (ULEVs).