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Detail of outcome
This document sets out a summary of responses received from the consultation on salary sacrifice for the provision of benefits-in-kind.
As announced at Autumn Statement 2016 the tax and employer National Insurance advantages of salary sacrifice schemes will be removed from April 2017, except for arrangements relating to employer-provided pensions (including advice), childcare, Cycle to Work and ultra-low emissions cars. Arrangements in place before April 2017 will be protected until April 2018; cars, accommodation and school fees will be protected until April 2021.
At Budget 2016 the government announced it will consider limiting the range of benefits-in-kind that attract Income Tax and National Insurance Contributions advantages when provided as part of salary sacrifice arrangements.
The purpose of the consultation is to explore potential impacts on employers and employees should the government decide to change the way the benefits code applies when a benefit-in-kind is provided in conjunction with a salary sacrifice or flexible benefit scheme.
The government is keen to seek views from a wide range of stakeholders, including employers who operate salary sacrifice and flexible benefit arrangements, their representatives, trade organisations and any other interested parties.