Confirmation has been received that the tax and employer national insurance advantages of salary sacrifice schemes will be removed with effect from April 2017, save for arrangements relating to pensions, childcare, cycle to work and ultra-low emission cars.

Arrangements that are already in place before April 2017 will be protected until April 2018, with arrangements for cars, accommodation and school fees benefitting from protected status until April 2021.

Employers should therefore use the time available to assess the impact of the forthcoming changes on their salary sacrifice arrangements and, where relevant and appropriate, consider changes to the timing of those arrangements to avail themselves of the above protection windows.