Autumn Statement 2016 - Benefits in kind and salary sacrifice – tax changes
The Chancellor has confirmed in his Autumn Statement the changes to the tax position on benefits in kind provided under salary sacrifice arrangements. From April 2017, with some protected exemptions e.g. childcare, any benefit provided by way of salary sacrifice will be taxable on the greater of the amount of salary sacrificed and the cash equivalent as laid down by the tax legislation. On that basis, for example, a mobile telephone provided by salary sacrifice would be taxable on the amount of salary sacrificed to obtain it as under the tax legislation the provision of such a telephone is exempt.
It follows, therefore, that any provision of benefits in kind and salary negotiation will need to be carefully managed to ensure that a composite package is agreed that does not involve a salary sacrifice unless the tax exemption for such benefits is to be lost.
Date: 23rd November, 2016
Articles from this Author
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
19 TAG Alliances Member Firms will be gathering in the Isle of Man this weekend for the 2018 UK and Ireland Regiona… twitter.com/i/web/status/1…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole