The new rules on salary sacrifice are coming into play on 6th April 2017 are you up to date on the changes? Here is a quick overview on what to expect,
Salary sacrifice for pension, Direct employer contracted childcare, Cycle to work, childcare vouchers, workplace nurseries and cars with emissions below 75g CO2 / km will all remain unaffected and employees will still continue to benefit.
Some of the benefits that you will see an impact on are Cars, Mobile phones, Workplace parking and white goods. The taxable value of the benefit will be the higher of the current value or the cash forgone. This will be the value you use for calculating National Insurance contributions and income tax.
The New rules start from 6th April 2017 however there are some exceptions for employees that that entered into a salary sacrifice before 5th April 2017. These employees will still be eligible to receive the benefits of the salary sacrifice until the salary sacrifice contract hits a trigger point.
So what’s a trigger point? The standard trigger point is when a salary sacrifice contract auto renews, renews, ends, starts or is modified or changed. However if there is an existing salary sacrifice contract still in place on the 6th April 2018 this will be classed as a trigger point, but not for cars with emissions over 75g CO2/km, school fees and accommodation benefit this will be a trigger point on 6th April 2021.
If this all sounds a little confusing why not give us a call about outsourcing your payroll and let us deal with all the changes!