Budget impacts salary sacrifice schemes - Shock announcement impacts employer computer loan schemes
Description:
Gordon Brown's tenth budget as chancellor of the exchequer sprang a shock for salary sacrifice schemes when the government announced today the removal of the tax exemption on employer loaned computers from 6 April 2006.
Content:
Gordon Brown's tenth budget as chancellor of the exchequer sprang a shock for salary sacrifice schemes when the government announced today the removal of the tax exemption on employer loaned computers from 6 April 2006.
"This will have a serious impact on many employers and those employees who have taken out salary sacrifice schemes to enable the private use of employer loaned computers in homes. Those presently committed and tied into such schemes may from April 6th be liable to be taxed on the benefit now being provided. This change means many employers will have to review their benefits policies immediately, and many of their employees could be hit by increased costs in less than a month's time." Doug Sawers, Managing Director of Ceridian in the UK.
As a result of the announcement, employers will have to review their policies of lending equipment to employees and their families. Employees who have joined a scheme through salary sacrifice will potentially see their costs increase by the tax on either the employer lease costs or 20% of the asset value of the equipment. Many employees will be tied into a three-year scheme, from which they cannot withdraw.
Other measures announced include the removal of tax exemption for employees who are provided with more than one mobile phone for private use.
Author: Ceridian Corporation
About Author:
Author - Simon Parsons, Ceridian - Over 40 years' UK and international experience in Payroll Services and outsourced HR Services including EAP, Flexible Benefits and HR Consulting For more information or assistance:
Visit us at: www.ceridian.co.uk
Email us at: info@ceridian.co.uk
Random related phrase:
business law group
Misspelled random related phrase:
bbusiness law group, usiness law group, ubsiness law group, buusiness law group, bsiness law group, bsuiness law group, bussiness law group, buiness law group, buisness law group, busiiness law group, busness law group, busniess law group, businness law group, busiess law group, busienss law group, busineess law group, businss law group, businses law group, businesss law group, busines law group, business law group, businesss law group, busines law group, busines slaw group, business law group, businesslaw group, businessl aw group, business llaw group, business aw group, business alw group, business laaw group, business lw group, business lwa group, business laww group, business la group, business la wgroup, business law group, business lawgroup, business lawg roup, business law ggroup, business law roup, business law rgoup, business law grroup, business law goup, business law gorup, business law grooup, business law grup, business law gruop, business law grouup, business law grop, business law gropu, business law groupp, business law grou
No comments:
Post a Comment