By Robin Pointon, Managing Director of Go Travel Solutions
In the Government’s Autumn Statement, the Chancellor announced plans to change how employers can support their employees with additional benefits through salary sacrifice. These changes came into effect from 1 April 2017 but how many UK businesses are aware of these changes and will anybody be caught out?
This is big news for the employee benefits sector and will certainly impact the choices available for benefit providers and employer HR managers. Businesses predicated on salary sacrifice may have to change their model.
HMRC is bringing more rigour to the salary sacrifice process and the changes announced will reduce the range of taxable benefits allowable. However, many key offerings were exempted, such as childcare, pensions, cycle to work and electric vehicle schemes.