Consultation on amended rules on payrolling car and fuel benefit

Close date: 28 November 2017

The Government consults on draft legislation in relation to car data reporting requirements under optional remuneration arrangements, also known as salary sacrifice schemes, for employers intending to payroll company car and fuel benefit made to employees.

The draft Regulations remove the tax and employer national insurance contributions advantages of optional remuneration arrangements, to provide that, where a benefit in kind is provided under such arrangements, the taxable amount will be the greater of the benefit in kind calculated under normal rules or the amount of salary sacrificed.
Consultation document: Draft legislation - The Income Tax (Pay As You Earn) Regulations 2017