Salary sacrifice
Salary sacrifice is a contractual arrangement whereby an employee gives up the right to receive part of their cash remuneration, usually in return for their employer’s agreement to provide some form of non-cash benefit.
Follow the links below for guidance on a wide range of questions relating to salary sacrifice – from both the employee’s and the employer’s perspectives.
An overview of salary sacrifice arrangements, including HM Revenue & Customs (HMRC’s) role in assessing schemes once they’ve been set up.
Salary sacrifice: further general information
Revised guidance for employers that builds on the salary sacrifice information contained in the overview PDF above.
Salary sacrifice and non-cash benefits during statutory maternity leave (PDF 133K)
Guidance on how salary sacrifice affects Statutory Maternity Pay and on the non-cash benefits employers must provide during statutory maternity leave.
Information for employers on a number of tax and National Insurance contributions issues that can arise if non-cash benefits but no cash earnings are provided to an employee.
Salary sacrifice, tax credits
and childcare: information for employees
Includes examples to help you decide whether it’s more efficient
to use tax credits or employer childcare vouchers to cover childcare costs.
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