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What Are The Changes To Salary Sacrifice For Cars In 2017?

NEW RULES IMPACTING SALARY SACRIFICE ARRANGEMENTS 

Any salary sacrifice agreements entered into on or after 6th April 2017 will be subject to new governing measures. Employer national insurance contributions will be based on the higher of the gross amount of salary being sacrificed or the value of the BIK provided. These new rules do not affect cars with CO2 emissions of 75 g/km and below. Where employees enter into new arrangements on or after 6 April 2017, then their company car benefit will equal the greater of (i) the amount as calculated via traditional company car BIK methodology, and (ii) the gross salary sacrifice foregone. 

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