Published 27th March 2017

There are new rules where benefits are taken in place of salary, and some quite subtle changes in the way benefits are taxed.

This will affect employees and employers where the employer makes benefits available through a salary sacrifice arrangement or where there is a choice between cash allowances and benefits in kind.

The taxable benefit will be the higher of the cost to the employee (amount of salary sacrificed) and the actual cost to the employer. Pensions, childcare, cycle to work schemes and ultra-low emission vehicles are not affected by the new rule.

Existing contracts are not affected until the contract id changed or ends, or until April 2018. (April 2021 for cars, school fees and accommodation).