call us
Glasgow
+44 (0)141 221 2984
Edinburgh
+44 (0)131 225 6366
Stirling
+44 (0)1786 451745
Dumbarton
+44 (0)1389 765238
Hamilton
+44 (0)1698 459444
Glasgow
+44 (0)141 221 2984

Edinburgh
+44 (0)131 225 6366

Stirling
+44 (0)1786 451745

Dumbarton
+44 (0)1389 765238

Hamilton
+44 (0)1698 459444

French Duncan

Government consults on tax-efficient benefits

21 September 2016

The purpose of the consultation is to examine the potential impact on employers and staff in the event that the government changes the way the benefits code applies when a benefit in kind (BIK) is provided along with a salary sacrifice or flexible benefit scheme. Changes to tax legislation have been proposed so that BIKs offered through salary sacrifice or flexible benefits would be chargeable to income tax and Class 1A employer NICs.

Although employers would still be able to offer benefits through salary sacrifice arrangements, they would not receive NIC or tax advantages in doing so. The consultation does not include employer pension contributions, employer-provided pension advice, employer-supported childcare benefits and the provision of workplace nurseries, as well as health-related benefits such as cycle to work scheme equipment.

The consultation opened on 10 August and will run until 19 October 2016 and the government expects to make an announcement based on the responses during the Autumn Statement 2016. If you have any queries or concerns relating to this please contact us by email or on 0141 221 2984.