These schemes offer income tax and National Insurance (NI) savings to the employee and NI savings to the employer.
In the 2016 Autumn Statement the UK Government announced that it is to limit the range of benefits in kind that can be provided under a salary sacrifice arrangement from April 2017.
Not all salary sacrifice schemes are affected and schemes that provide pension contributions, childcare or cycle to work benefits will remain exempt and can continue. The new legislation will have an impact on our car parking (Parking Plus) and sports membership (Fitness Plus) schemes.
The changes mean that:
The salary sacrifice scheme known as ‘Fitness Plus’ is now closed to new members. Existing members will continue to receive the tax benefits associated with the scheme until 31 March 2018 when it will close. For future membership queries please contact firstname.lastname@example.org or call 01225 383597.
The salary sacrifice scheme known as ‘Parking Plus’ will be open to new members until 31 March 2017. Existing members will continue to receive the tax benefits associated with the scheme until 31 March 2018 when it will close and become a non-salary sacrifice scheme for all current and future members.
This does not affect staff members’ ability to either be members of the gym or have a parking permit, only the tax benefits associated with the salary sacrifice schemes. If you have any questions relating to these Government changes and the impact on our salary sacrifice schemes, please contact Luke Edwards in HR on L.F.Edwards@bath.ac.uk.