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HMRC restricts staff tax perk to ultra-low emission vehicles

TRAVEL BEHAVIOUR

28 April 2017
Joseph: lobbied for tax perk on public transport tickets
Joseph: lobbied for tax perk on public transport tickets

 

The Government this month partially closed a tax break that has allowed thousands of employees to obtain cars through salary sacrifice schemes. The perk will remain for ultra-low emission vehicle (ULEVs) purchases.

Salary sacrifice schemes enable employees to enter into written agreements to give up a portion of their salaries in return for specific benefits. In doing so, the employee avoids paying income tax or National Insurance Contributions (NICs), or both, on the salary...

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