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For the employee, the following points will need to be considered: Annual Allowance; Lifetime Allowance and; Increase in pension contributions. The impact on earnings related State benefits and other salary linked entitlements

Next steps The following are key action points you should be considering: • Employers who are affected by the changes should consider responding to the consultation in respect of the draft legislation (consultation period ends 30 January 2017); • Advise employees that tax efficient salary sacrifice arrangements are due to come to an end and whilst there are transitional rules in place, the likelihood is that the current year’s arrangement will be last which can be provided via an effective salary sacrifice arrangement; • Consider varying the existing arrangements before 5 April 2017 in order to fully maximise the transitional period; • Arrange for any new participants to enter into arrangements before 5 April 2017; • Advise employees that salary sacrifice can continue, or be introduced in respect of favoured and intangible benefits; • For employers with a payroll cost of £3m or more it will also be necessary to take into account the impact of the Apprenticeship Levy which is due to commence on 6 April 2017 and; • Where employers are not already doing so, consider offering salary sacrifice in respect of pension contributions, as well as the other favoured benefits The changes within the draft legislation are far reaching, going beyond preventing the use of salary sacrifice arrangements in the future. Employers should now review their existing arrangements and consider the impact of the new legislation.

Name: Nick Bustin Director of Employment Tax Company: haysmacintyre Email: nbustin@haysmacintyre.com Web Address: www.haysmacintyre.com Address: 26 Red Lion Square London WC1R 4AG Telephone: +44 20 7969 5578

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Wealth & Finance January 2017  
Wealth & Finance January 2017  
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