{"id":657,"date":"2016-08-05T12:08:32","date_gmt":"2016-08-05T11:08:32","guid":{"rendered":"https:\/\/lancasterclements.co.uk\/?p=657"},"modified":"2016-08-01T15:09:43","modified_gmt":"2016-08-01T14:09:43","slug":"salary-sacrifice-and-auto-enrolment","status":"publish","type":"post","link":"https:\/\/www.lancasterclements.co.uk\/salary-sacrifice-and-auto-enrolment\/","title":{"rendered":"Salary sacrifice and Auto Enrolment"},"content":{"rendered":"

Salary sacri\ufb01ce and Auto Enrolment<\/h1>\n

With pension auto enrolment applying to more and more employers, we look at the options for using a salary sacrifice scheme to deliver tax savings for the employer and the employee.<\/h3>\n

Salary sacrifice takes place when an employee gives up the right to part of their remuneration in return for the employer providing the employee with some form of non-cash benefit.<\/p>\n

As announced in the 2016 Budget, the government is considering limiting the range of benefits that attract income tax and National Insurance advantages when they are provided as part of a salary sacrifice arrangement. However, the government\u2019s intention is that pension savings, childcare and health related benefits will continue to attract these reliefs. One option therefore is that employees sacrifice part of their salary in return for the employer paying a sum to a registered pension scheme for the employee\u2019s benefit.<\/p>\n

Conditions for effective salary sacri\ufb01ce<\/em><\/h3>\n

The recent Reed Employment tax case illustrated that it can be costly to implement a salary sacrifice scheme incorrectly. To be effective the arrangement has to reduce the employee\u2019s contractual right to cash remuneration. This requires two conditions to be met:<\/p>\n