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Salary Sacrifice Changes 26th Apr 2017 Business | Tax
From April 2017, most salary sacrifice schemes will be subject to the same tax regime as cash income. Salary sacrifice schemes exchange salary for a noncash benefit (such as a mobile phone). Both the employer and employee make a tax saving because the benefit is taxed less than a salary or not taxed at all.

The changes will affect schemes differently: pensions, pensions advice, childcare, Cycle to Work and ultra-low emission cars will be exempt. All arrangements in place before April 2017 will be protected for up to a year, and arrangements in place before April 2017 for cars, accommodation and school fees will be protected for up to 4 years. From April 2017, the tax benefits of many salary sacrifice arrangements will no longer be available. 

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