Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

PAYE matters

16 August 2016
Issue: 4563 / Categories: News

New papers on salary sacrifice and termination payments.

Consultations on salary sacrifice and termination payments have been published by HMRC. Extracts follow.

Salary sacrifice

HMRC is proposing that benefits provided through salary sacrifice will be chargeable to income tax and Class 1A employer National Insurance even if they are normally exempt.

Employers will not be prevented from using salary sacrifice but it will remove the tax and National Insurance advantages that result.

Employer pension contributions employer-provided pension advice employer-supported childcare and provision of workplace nurseries and cycles and safety equipment provided under the cycle-to-work scheme will not be affected.

Responses should be emailed here  by 19 October. Details are here.

Termination payments

HMRC’s response to the consultation document on the reform of the tax and National Insurance treatment of termination payments has been published alongside a consultation on the new draft legislation.

From April 2018 all payments in lieu of...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon