Salary Sacrifice

Salary Sacrifice

Didn't find your answer?

I have just gone in to a regular client this morning, where I review Year End payroll data each year. Unbeknown to me, the client had tried to set up a Salary Sacrice scheme with one of the non-exec directors. However, it has been processed incorrectly. The amount to be "sacrificed" was merely shown as a deduction (not reduction) of pay. The client then calculated what they thought the NI(er) saving should be, and subsequently paid over the amount deducted, plus calculated NI. In reality the employee has not benefitted from the PAYE savings to which he was due. Also, the employer has paid over to the pension provider, a calculated NI(er) saving, which has not actually been made. Are there any suggestions as to how this may be corrected retrospectively, given it relates to 2014/15?

Replies (1)

Please login or register to join the discussion.

By stratty
13th Jul 2015 11:28

EYU

You need to work out what the correct position is and apply the changes by virtue of an earlier year update through the RTI system.

Manual PAYE/NI calculations and probably the HMRC BPT for the EYU unless your payroll software supports that directly.

Thanks (1)