Tax-Saving Guides

Slash Your Tax for Small Businesses

6. Employing staff, PAYE & NI obligations and taxable benefits

6.4. Salary sacrifices and flexible benefits packages

6.4.1. What’s a salary sacrifice?

A salary sacrifice is where an employee agrees to take a reduction in salary in exchange for a non-cash benefit. HMRC says that this must be a genuine pre- arrangement that ...