Flexible benefits schemes ― an overview

Produced by Tolley in association with

Employment Tax

Guidance

An introduction to flex schemes

A flexible benefits scheme allows an employee some degree of choice in how their remuneration package is structured. The terms ‘salary sacrifice scheme’ and ‘flex scheme’ are often interchangeable, because they usually refer to the same thing. The main difference, if there is one, is that ‘salary sacrifice’ may refer to a degree of employee choice given on a single employment benefit. A flex scheme on the other hand often applies choice to a number of different employment benefits at the same time, therefore the considerations on implementation are more numerous.

This document sets out the basics of how a flex scheme might work, alongside the usual steps involved when implementing a successful scheme. A number of additional guidance documents then provide further assistance on the various practical steps and considerations, as listed below:

Description	Guidance notes
Preliminary work around feasibility prior to implementing a flex scheme	Feasibility study for a flexible benefits scheme
Employee car or company car, matters to consider	Own car v company car
Rules

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Robert Woodward

Employment Tax Manager at Frank Hirth plc

Robert is an expert in UK employment tax matters for employers with UK based employees, including UK employees working overseas, and overseas employees coming to the UK. He has extensive experience of advising clients with regards to PAYE matters, employee benefits and social security as well as employment related payments outside the payroll functions such as termination settlements and payments to consultants and other non-payroll labour.After graduating in Politics and Law from the University of Southampton, Robert started his tax career at HMRC as an employer compliance officer undertaking enquiries into employers' expenses and benefits systems before moving into a large international practice and then into the Big 4. Here he assisted with tax investigations, flexible benefits planning, employment tax compliance and international social security.Robert has presented to various audiences and has had a number of articles published in various magazines on employment tax matters.Robert is a fully qualified member of both the Association of Taxation Technicians (ATT) and the Chartered Institute of Taxation (CTA).

Popular Articles

Corporation Tax

Taxation of loan relationships

Taxation of loan relationshipsThe vast majority of companies will have loan relationships and so will need to consider how they are taxed under the loan relationship rules. There are also specific provisions dealing with relevant non-lending relationships and other deemed loan relationships.

14 Jul 2020 13:48 | Produced by Tolley Read more

Class 1 v Class 1A

Class 1 v Class 1AClass 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met

Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more

��Ƶ