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14 Sep 2016
by Debi O'Donovan

Salary sacrifice on health screening and income protection under threat

Salary sacrifice on valuable benefits such as health screening, income protection and other group risk prodcuts is under threat of being withdrawn by HM Revenue & Customs.

But there is an opportunity for employers to put pressure on government to keep salary sacrifice on various key benefits.

An HMRC consultation is currently open for responses. This week organisations, in particular providers and advisers, have been meeting with HMRC to discuss the impact of the proposed changes.

The HMRC has done research among payroll professionals, but now is the time for reward, benefits and HR professionals to make the strategic people and business case known for key salary sacrifice benefits.

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There is feeling in the market that some salary sacrifice benefits fall too much in the luxury end of perks. But there are also vital benefits that truly benefit lower paid staff that are in danger of also being removed.

Written responses to the consultation can be submitted to HMRC up until 19 October.

Reward, benefits and HR professionals are urged to looked at the consultation document and make themselves aware of what HMRC are proposing, and to consider how it will impact their strategies.

REBA's own Benefits Shifts research showed here has been a huge shift to move group risk benefits into flexible benefits schemes in order to save costs. These savings could be lost.

Employers, advisers and providers are also encouraged to add their voice to the REBA response. Add your views to be included in the REBA response here

Download the full HMRC Consultation on salary sacrifice document