How to deal with maternity pay, salary sacrifice and childcare vouchers
Author: Paul Tew
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- Appreciate that salary sacrifice is a contractual arrangement between employer and employee.
- Remember that a salary-sacrifice arrangement must be effective in achieving its intended purpose.
- Remember that HM Revenue and Customs will not provide advice on setting up, drafting, operating or varying salary-sacrifice arrangements.
- Be aware of the impact that a salary-sacrifice arrangement may have on statutory maternity pay.
- Be aware of the relationship between statutory maternity pay, salary sacrifice and childcare vouchers.
- Take into account that a "lifestyle change" such as expecting a baby may justify changing a salary-sacrifice arrangement before the intended period has elapsed.
- Remember that a salary-sacrifice arrangement may reduce an employee's entitlement to contractual maternity pay.