UK Tax Tribunal Highlights Risks of Improperly Implemented Salary Sacrifice Schemes

February 10, 2012
In the recent case of Reed Employment, the First-tier Tax Tribunal found the Reed group of companies liable for £158 million of tax and national insurance following a failed salary sacrifice arrangement. This update examines the decision, which is a salutary warning for all employers either operating or thinking about introducing salary sacrifice schemes to take great care to ensure that they are robust and consistent with HMRC’s requirements.