PAYE matters

Consultations on salary sacrifice and termination payments have been published by HMRC. Extracts follow.

Salary sacrifice

HMRC is proposing that benefits provided through salary sacrifice will be chargeable to income tax and Class 1A employer National Insurance even if they are normally exempt.

Employers will not be prevented from using salary sacrifice but it will remove the tax and National Insurance advantages that result.

Employer pension contributions employer-provided pension advice employer-supported childcare and provision of workplace nurseries and cycles and safety equipment provided under the cycle-to-work scheme will not be affected.

Responses should be emailed here  by 19 October. Details are here.

Termination payments

HMRC’s response to the consultation document on the reform of the tax and National Insurance treatment of termination payments has been published alongside a consultation on the new draft legislation.

From April 2018 all payments in lieu of...