Salary sacrifice arrangements ― overview

Produced by Tolley in association with

Employment Tax

Guidance

The terms ‘salary sacrifice scheme’ and ‘flex scheme’ are often interchangeable, because they usually refer to the same thing, ie they allow an employee some degree of choice in how their remuneration package is structured. The main difference between the two terms (if there is one) is that ‘salary sacrifice’ may refer to a degree of employee choice given on a single employment benefit, whereas a flex scheme often applies choice to a number of different employment benefits at the same time.

This document sets out the basics of how salary sacrifice schemes might work. A number of additional guidance documents then provide further detail on the various practical steps and implementation considerations, as listed below:

Description	Guidance notes
Interaction between salary sacrifice and national living or minimum wage	Salary sacrifice and national minimum wage
When and how often may an employee change a salary sacrifice agreement?	Changing the terms of a salary sacrifice agreement
Interaction between salary sacrifice and maternity benefits	Salary sacrifice arrangements and non-cash benefits during maternity leave
Pension

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Robert Woodward

Employment Tax Manager at Frank Hirth plc

Robert is an expert in UK employment tax matters for employers with UK based employees, including UK employees working overseas, and overseas employees coming to the UK. He has extensive experience of advising clients with regards to PAYE matters, employee benefits and social security as well as employment related payments outside the payroll functions such as termination settlements and payments to consultants and other non-payroll labour. After graduating in Politics and Law from the University of Southampton, Robert started his tax career at HMRC as an employer compliance officer undertaking enquiries into employers' expenses and benefits systems before moving into a large international practice and then into the Big 4. Here he assisted with tax investigations, flexible benefits planning, employment tax compliance and international social security. Robert has presented to various audiences and has had a number of articles published in various magazines on employment tax matters. Robert is a fully qualified member of both the Association of Taxation Technicians (ATT) and the Chartered Institute of Taxation (CTA).

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