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If there is a point of legal uncertainty you can contact the HMRC clearance team.

HMRC will not comment on a proposed salary sacrifice arrangement before it has been put in place.

The only benefits you do not need to value and do not have to report to HMRC for a salary sacrifice arrangement are: If you set up a salary sacrifice arrangement with an employee before 6 April 2017, you can continue to calculate the value of the benefit in the same way until April 2021.

Your employee’s contract must be clear on what their cash and non-cash entitlements are at any given time.

The impact on tax and National Insurance contributions payable for any employee will depend on the pay and non-cash benefits that make up the salary sacrifice arrangement.

You need to pay and deduct the right amount of tax and National Insurance contributions for the cash and benefits you provide.

The amount they receive may be less than the full standard rate, or they may lose the entitlement altogether.

Salary sacrifice may affect an employee’s entitlement to contribution based benefits such as Incapacity Benefit and State Pension.

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