Salary sacrifice: getting to grips with post April 2017 rule changes

Salary sacrifice can still be a useful tool for employers wanting to recruit and retain key employees, but the new rules introduced from April 2017 may add complexity for those employers who still choose to use such schemes, warns Meg Wilson CTA

The government first raised concerns about the increasing use of salary sacrifice schemes in the July 2015 Budget. This was attributed to the cost to the Exchequer (and therefore to taxpayers generally), and the inequality it creates between employees and employers who use such arrangements, and benefit from paying lower tax and national insurance contributions (NIC), and those who do not (particularly lower paid workers).

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