SE21973 - Benefits: exemption for workplace nurseries: commercially marketed nursery schemes: dealing with disputes

If you believe that a purported salary sacrifice is ineffective, but the employer does not accept that view, the way to resolve the dispute is by means of a Regulation 49 determination on the employer concerned, followed by an appeal and a Commissioners’ hearing.

If the salary sacrifice is effective, you may be faced by a refusal by the employer to report the benefit on forms P11D (because they believe the benefits to be exempt under Section 155A) or a failure by the employees to include the benefit in their SA returns (for the same reason). In those cases you should consider

• taking penalty action against the employer for the submission of incorrect forms P11D (especially if you have previously advised them that the exemption does not apply) and/or
• opening a Section 9A enquiry into the employee’s SA return. If the employee will not accept liability this will result in a Revenue amendment and an appeal to the Commissioners.