As George Osborne once again strives for relatively palatable ways to keep the budget deficit within acceptable bounds, pundits are pondering whether salary sacrifice arrangements might find themselves under renewed attack, says PKF partner Philip Fisher.
This could have a number of consequences including threatening the existence and future of flexible benefits schemes, many of which rely on employees taking a reduction in pay as part of the conditions for entry.
A few years ago “flex”, as it became affectionately known, seemed to be a dream panacea. The original principle was simple. Employees would get a normal pay package without any benefits in kind attached.
They would also get an allowance, expressed in monetary terms, points or some other fashion, which they could expend on the benefits that they wanted from a menu of available choices.