Salary Sacrifice allows some employers and employees to pay less Income Tax and NICs by replacing cash salary with Benefits In Kind (BiKs) – such as private healthcare, mobile phone, a company car, a gym membership
The measure will limit the Income Tax and employer National Insurance contributions (NICs
) advantages where BiKs
are offered through salary sacrifice or where the employee can choose between cash allowances and BiKs
. Salary sacrifice is a contractual arrangement between an employee and their employer involving a reduction of an employee’s cash pay in return for a BiK
, such as a phone or a car. For some BiKs
the value used for calculating tax and NICs
liability is less than the amount of the cash pay forgone, allowing the employee and employer to choose to pay less tax and NICs
than they would otherwise. The measure will fix the taxable value of those BiKs
provided through salary sacrifice at the higher of the amount of cash forgone or the amount calculated under the existing BiK
There will be no change
to the tax and NICs
advantages of salary sacrifice arrangements for:pension saving into a registered pension scheme, employer provided pensions advice, employer-supported childcare, cycle to work schemes or Ultra Low Emission Cars (ULEVs
). Further, those already in contracts for BiKs
involving salary sacrifice will be protected for the length of that contract, subject to final backstop dates.
You can find more detailed information here
Rules for Charity Meetings
Your charity’s governing document should say how and when you should organise meetings and how to vote on decisions. You must do these things exactly as the governing document says. If you don’t, any decision you make during a meeting could be invalid.
If your governing document isn’t clear about meetings, you should think about adding to it (or agreeing extra rules). For example:
- who can attend the meetings (most meetings are just for the trustees)
- how often and when you should hold meetings
- the minimum number that must attend a meeting so that decisions can be made properly (called the quorum)
- how you deal with charity trustees who have a conflict of interest
Having the right rules in place for meetings will help you to make decisions effectively, manage conflicts of interest appropriately and deal with problems.