Salary sacrifice may have become a target for government cuts. Jonathan Stapleton explains why.
Steve Webb has warned that the Conservative government may target the £15bn salary sacrifice bill in its July emergency Budget.
The government will introduce new business and benefits reforms focusing on employer taxation and a doubling of free childcare as part of the Queen's Speech.
The Liberal Democrats will look at introducing a flat-rate pensions tax relief, expand shared parental leave, consider increasing NI thresholds and commit to 20 hours of free childcare a week for all working parents.
The Green Party has pledged to bring the minimum wage up to the Living Wage with a target of making it £10 per hour by 2020.
Carers who stay in their employer's home and ministers of religion are being excluded from the removal of the £8,500 benefits in kind (BiK) cap.
The Confederation of British Industry (CBI) is urging the government to cut employee national insurance contributions (NICs) and provide more free childcare places.
Salary sacrifice is a pretty common concept in benefits administration, but it is still fraught with legal risks. Owain Thomas outlines the potential pitfalls and advantages.
Employers could be administering benefits through their payroll and eradicating up to 99% of P11Ds if a proposal by the Office of Tax Simplification (OTS) is implemented.
The leaders of the Office of Tax Simplification's review of the employee benefits and expenses system believe their "radical" recommendations will clean-up the current "complex and burdensome" rules and processes.