SALARY SACRIFICE
THE PERKBOX
PERSPECTIVE
How will these new tax laws shape our salary sacrifice perks?
WHICH
SCHEMES
WILL BE
AFFECTED?
WHAT SHOULD I DO AS AN
EMPLOYER?
Lynda Finan, Legal Director at DLA Piper
shares her advice:
“Employers should determine which
arrangements are affected and
ensure that their payroll systems are
appropriately updated. The additional
costs in tax terms should be weighed
against the potential impact from
an HR perspective of withdrawing
the arrangements.
“Employers who decide to continue
their arrangements should communicate
the impact of the changes to employees
well ahead of them taking effect.
They should also provide sufficient
information for employees to make an
informed decision about whether they
wish to continue to receive the benefit.”
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HOW WILL THE CHANGES
AFFECT ME AS A PERKBOX
CUSTOMER?
For Perkbox customers, the changes to
salary sacrifice are limited.
WHAT ABOUT THE CAR
SCHEME?
The car scheme is slightly more complex:
any orders placed before the end of
March will save tax and NI until 2021.
For orders starting after April 2017, the
current tax and NI saving will continue
but only for cars which emit less
than 75 CO2/KM (Plug-in hybrid and
electric vehicles.)
The following
will remain
unchanged:
•Childcare Vouchers
•Workplace nursery
benefit
•Pensions
•Cycle-to-work
•Ultra-low
emission cars
•Holiday buyings
•Additional annual
leave
The following
will no longer be
eligible for tax
savings, but still
eligible for NI
savings:
•Car Parking
•Gyms
•Mobile phones
•Wills
•Technology