Use of salary sacrifice and flexible benefit arrangements
This week sees the last opportunity to contribute to HM Treasury’s call for evidence on the use of salary sacrifice and flexible benefit arrangements. The CIPP survey closes Friday 22 January.
The CIPP has worked with HM Treasury to publish a survey to gather evidence and views from members on the use of salary sacrifice and flexible benefit arrangements.
Remuneration packages are important to both employers and employees and can be made up of a mixture of cash and non-cash benefits in kind. Non-cash benefits can often play a vital role in attracting or retaining employees.
In recent years the market for voluntary or flexible benefit packages has grown and remuneration is often combined with salary sacrifice arrangements. The latter is where an employer and employee agree to change the terms of the employment contract and reduce the employee’s cash pay in exchange for non-cash benefits-in-kind. These can allow some employees and employers to reduce the income tax and National Insurance contributions (NICs) that they pay on remuneration. At Autumn Statement 2015, the government announced that it remains concerned about the growth of salary sacrifice arrangements and their cost to the taxpayer. The government said it will gather further evidence, including from employers, on salary sacrifice arrangements to inform its approach.
The CIPP has worked with HM Treasury to publish this survey to gather evidence and views from members on the use of salary sacrifice and flexible benefit arrangements. It should take no longer than 20 minutes to complete and taking part in the survey will provide CIPP members with an opportunity to help inform government thinking.
The survey closes on Friday 22nd January. All responses are anonymous.