Is Salary Sacrifice legal and are there any risks to the business when switching?

Salary Sacrifice is a HMRC approved National Insurance cost saving scheme used by 86% of the
FTSE 350 but only 27% of UK companies.


Employers don’t need to inform HMRC if they are implementing a salary sacrifice. Often
employers will provide information on a salary sacrifice to give HMRC the opportunity to
comment if any aspect might cause an issue in the future. HMRC sees an employee’s contract
(which is being altered) as a matter between the employee and the employer and is only
concerned that the employer is providing the correct tax and national insurance on the
employee’s total reward.


For more information you can visit the HMRC Salary Sacrifice page.