![]() If you set up a new salary sacrifice arrangement, you’ll need to work out the value of a non-cash benefit by using the higher of the: Calculate a non-cash benefitįor any non-cash benefits, you need to work out the value of the benefit. You need to pay and deduct the right amount of tax and National Insurance contributions for the cash and benefits you provide.įor the cash component, that means operating the PAYE system correctly through your payroll. The impact on tax and National Insurance contributions payable for any employee will depend on the pay and non-cash benefits that make up the salary sacrifice arrangement. ![]() Work out the effect on tax and National Insurance contributions There are some exceptions to this, Employment Income Manual 42755 gives more information. Salary sacrifice arrangements can allow opting in or out in the event of lifestyle changes like these.Īs a general rule, if an employee swaps between cash earnings and a non-cash benefit whenever they like, any expected tax and National Insurance contributions advantages under a salary sacrifice arrangement will not apply.
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