7 minute read.

The opportunities to use a salary sacrifice arrangements to save tax and National Insurance were seriously curtailed with the introduction of the alternative valuation rules that apply from 6 April 2017 to value benefits provided under an optional remuneration arrangement (OpRA).

Where the rules apply, the benefit of any associated tax exemption is lost if a benefit is provided through a salary sacrifice or other OpRA. Under a salary sacrifice arrangement an employee gives up an amount of salary in return for a benefit in kind. Where the benefit remains exempt from tax when provided under a salary sacrifice arrangement, the employee saves tax and the employer and employee save National Insurance. 

3 minute read.

A typical remuneration package comprises a number of elements. Some of these are subject to legislative control. For example, employers must pay employees in accordance with the National Minimum Wage legislation, paying at least the National Living Wage to workers aged 25 and older and, for workers under the age of 25, at least the National Minimum Wage for their age.

In addition, employers must comply with the equal pay legislation and provide paid holiday at least equal to the statutory minimum. However, other aspects of the remuneration package are at the discretion of the employer.