A reminder that most salary sacrifice arrangements require the employee to be taxed and subject to national insurance on their old (higher) salary level; or on the new lower salary plus the taxable value of the benefit in kind value if that would be higher.

Exceptions to this are cars with emissions of 75g CO2 /km or less, pensions, pension advice, childcare and Cycle to Work.  If salary is reduced (salary sacrifice) for these specific items the employee is taxable on the new lower salary.

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us