Bret Silverberg

UK Changes Employee Benefits Tax Rules

by Bret Silverberg
December 2016

The UK’s popular “salary sacrifice” tax benefit will undergo significant changes in 2017. Until now, employees have been allowed to swap part of their salary for non-cash employee benefits, like pension contributions, medical insurance, mobile phones, appliance purchases, and gym memberships, but the program is expensive and the government has decided to cut it back. Some perks will still be allowed however, including:

  • ultra-low emission cars
  • pension savings and advice
  • childcare
  • cycle-to-work

Other perks are allowed only until April of 2018, including:

  • company cars
  • accommodations
  • school fees

The new limitations are predicted to cost employees and their employers £85m in 2017 and 2018 and to raise £1bn in additional tax revenues over the next six years.

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Bret Silverberg

Bret Silverberg

Director, Content Strategy, Globalization Partners

Bret Silverberg joined Globalization Partners in April 2017 as Director of Content Marketing. Bret has extensive experience in publishing, including his background in human resources and employment marketing.