Comment on the salary sacrifice changes announced in the Chancellor’s Autumn Statement today.
Colin Ben-Nathan, Tax Partner at KPMG, said:
“The Government has decided to press ahead with the removal of tax advantages for salary sacrifice, aside from pensions, childcare, Cycle-To-Work and following representations from KPMG, amongst others, ultra-low emission vehicles from April 2017.
“This will affect a large number of employers and employees, who will see a rise in their tax bills, albeit there will be transitional arrangements for existing schemes. That said, deciding what is salary sacrifice and what is a renegotiation of a package may be subject to some argument!”
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Bronwyn Huband, KPMG Corporate Communications
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.