Is paying VAT on benefits worth the salary sacrifice?
Wednesday, August 24, 2011 | Posted by: Graham Brearley
Categories:
Business advice,
Tax,
Thought Leadership
| Tags: tax,
HMRC,
income tax,
VAT,
NIC,
salary sacrifice,
National Insurance,
national insurance contributions,
childcare vouchers,
AstraZeneca,
Cycle to Work,
employee benefits,
VAT liability,
vouchers,
European Court,
ECJ
That’s the question employers will be weighing up following the recent AstraZeneca (AZ) case ruling that raises the possibility of substantial VAT liabilities on employee benefits, such as retail vouchers, meals and Cycle to Work Scheme (CWS) rentals. How will the balance of payments fall? Senior VAT Manager Graham Brearley reviews the issue and asks: ‘Is this the end for salary sacrifice arrangements?’
