Salary sacrifice schemes and new VAT rules
« Back to BlogChanges to the VAT treatment of salary sacrifice schemes could increase their cost and make them more complicated to run.
From January 1 2012, companies will have to pay VAT on non-cash goods and services provided to employees in exchange for some of their salary. Employers will still be able to reclaim tax paid to suppliers for the goods and services as input tax. The change to the VAT treatment of salary sacrifice schemes, which often include such as bikes, childcare vouchers, and high street shopping vouchers, follows a ruling last year by the European Court of Justice over a tax dispute between AstraZeneca UK and HMRC .
Read more details from Nick Huber on this important case on the following link.
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