Salary Sacrifice guidance for employers updated
16 October 2018
If you are an employer find out how to set up a salary sacrifice arrangement and calculate tax and National Insurance contributions on them.
A salary sacrifice arrangement is an agreement to reduce an employee’s entitlement to cash pay, usually in return for a non-cash benefit. As an employer, you can set up a salary sacrifice arrangement by changing the terms of your employee’s employment contract. Your employee needs to agree to this change.
A salary sacrifice arrangement cannot reduce an employee’s cash earnings below the National Minimum Wage rates.
Gov.UK has recently updated its guidance and the update on this occasion relates to the contact details for the information on Tax free childcare and HMRC clearance team.
Did you know that the CIPP offers a training course that looks at the legal and payroll related implications of salary sacrifice schemes and other optional remuneration arrangements.