Editor's message: Salary-sacrifice schemes - whereby employees give up some of their salary in return for non-cash benefits in kind - are popular among both employees and employers, not only because they result in monetary savings for both parties, but because they can also open up a wider range of benefits to employees. However, schemes are not without their drawbacks - there are potential pitfalls that employees should be aware of.
Jo Jacobs, HR practice editor
In a time of low pay awards, employers can really enhance their reward offering through the benefits package they offer. Our research investigates the use of around 40 different benefits.
Updated to include information on Peninsula Business Services Ltd v Donaldson, regarding the provision of childcare vouchers during maternity leave.
Giving employees a choice of benefits, and delivering them in the most cost-efficient manner, are key themes emerging from this year's survey of employers' benefits and allowances packages.
Definition from the XpertHR glossary.
Practical guidance on setting up a salary-sacrifice scheme, including benefits in kind that are exempt from tax and national insurance; the use of a reference or notional salary; and the role of HMRC.
A large employer has been fined £5,000 by HM Revenue and Customs (HMRC) and ordered to repay over £30,000 in wages to 40 workers who were underpaid, in a stark reminder to employers to beware of making deductions from wages for a benefit that takes pay below the national minimum wage.
HR and legal information and guidance relating to salary-sacrifice arrangements.