Consumer Rights Bill and salary sacrifice
23 September 2014
A number of members brought the above Bill that is currently going through Parliament to the attention of the policy team, and were concerned by some articles published recently that stated this would impact salary sacrifice arrangements.
The articles in question implied that a salary sacrifice arrangement would be subject to a cooling off period, as with loan arrangements and credit agreements etc. Cleary this would have a major impact on any changes in contracts to accommodate salary sacrifice. HMRC and BIS have confirmed that this Bill will not impact salary sacrifice/employee benefit arrangements. HMRC intends to update its guidance in due course.