From 6 April 2017 the government removed the income tax and National Insurance contribution advantages of some salary sacrifice benefits. This has affected flexible and voluntary benefit schemes where employees pay for their benefits via salary sacrifice.
The Finance Bill 2017 calls this an ‘optional remuneration arrangement’. Going forward the government will restrict salary sacrifice advantages to the following benefits:
- Pensions advice
- Cycle to work
- Ultra-low emission vehicles of 75g CO2/km or less
Changes for group protection
To help you understand this in more detail, we have summarised the changes for group protection in our latest technical update. This includes:
- tax treatment for Group Income Protection and Excepted Group Life Assurance schemes
- a timetable for the changes
- details of the grandfathering protection in place
For further help and information please contact your usual Jelf consultant. Or email us at email@example.com.
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