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Salary sacrifice changes

There will be changes to the tax rules for salary sacrifice schemes from April 2017. These changes will see the removal of the tax and NIC advantages of certain benefits provided as part of a salary sacrifice arrangement.The following benefits will not be affected by these changes:Employer provided pensions and pensions advice Childcare vouchers Employer provided childcare or workplace nurseries Bicycles and cyclist safety equipment including cycle to work schemes, and Ultra-low emission cars, below 75g/kmIt has also been confirmed that all arrangements in place before April 2017 will be protected for up to a year, and arrangements in place before April 2017 for cars with CO2 emissions above 75g/km, accommodation and school fees will be protected for up to 4 years. Employers and employees are still free to use salary sacrifice, but with the tax and Class 1A NICs advantages removed. Employees will be able to reimburse their employer for the cash value of any benefit, after the end of the relevant tax year. For 2017-18, the agreed deadline for repayment will be 6 July 2018. Employers that have not yet reviewed their existing salary sacrifice arrangements would be well advised to do so.