The government has launched a consultation on a proposal to end tax and NI savings created by many salary sacrifice schemes.
Under the proposal, benefits in kind which are offered instead of cash would be taxed as if they were cash. However, the proposal suggests that certain benefits, for example, pension contributions and childcare vouchers would be excluded from this new tax scheme and so there would still be a tax benefit to sacrificing salary for these benefits. Also unaffected by the proposals are any benefits which are simply given to employees without a cash alternative offered.
The consultation on the proposals is open until 19 October 2016.