There is no obligation for an employer to inform HMRC that a wage sacrifice agreement has been concluded. HmRC will not comment on a salary drop-out system until it is put in place, but they will confirm, upon request, the correct tax treatment of the agreement as soon as it has been put in place. The general situation is that benefits granted under wage sacrifice agreements are maintained throughout maternity leave. However, there is an exception in the maternity rules with respect to “employment-related benefit plans” (which would include normal pension contributions). It appears that the intention is not to affect the employer`s obligations under social security legislation, so pension contributions can only be paid during the OML and MRL paid. An employee may also sacrifice future cash compensation that is not salary, for example.B. However, this decision appears to be based on a misunderstanding of the impact of wages on contractual remuneration and should therefore be treated with caution, not least because this could lead HMRC to argue that the wage sacrifice agreements have not been properly implemented. At the time of the Peninsula case, HMRC indicated that it would issue guidelines for employers in this area, but no guidance has yet been issued. This only applies to specific agreements with an employee, not your overall wage sacrifice policy. As a worker, you need to be aware of the impact of entering into a wage sacrifice agreement with your employer. For example, Sam earns $65,000 a year and plans to enter into an effective wage sacrifice agreement.

As part of this agreement, his employer will provide the use of a car worth $US 35,000 and will pay all operating costs of $11,500 related to it. Current expenses of $11,500 include registration without GST. . . .