What information does HMRC need to see after a salary exchange scheme is set up?
• Employers are not obliged to consult HMRC on variations to employees’ terms and conditions and are not obliged to tell HMRC when they first offer a new benefit-in-kind. But, it is open to employers, when a salary exchange has been put in place, to ask HMRC to confirm the correct tax treatment of the arrangement. Details should be sent to: HMRC Clearances Team Alexander House 21 Victoria Avenue Southend-on-Sea Essex SS99 1BD Email: HMRC Clearances Team This gives the employer reassurance that the arrangement has been implemented properly and they are acting correctly when not declaring benefits for tax purposes, operating PAYE and paying NICs. • If HMRC are asked to comment on a salary exchange arrangement HMRC need to check two things. First, that an effective variation of the contractual terms and conditions has taken place reducing some of the employee’s cash earnings and providing a benefit-in-kind. Second, what the correct tax and NICs treatment of the benefit-in-kind is. • To ch
