The key technical points to consider when setting up a salary sacrifice arrangement are considered in the Salary sacrifice arrangements 鈥� overview, Salary sacrifice and national minimum wage, Optional remuneration arrangements, and Salary sacrifice and pensions guidance notes. Set out below are the practical considerations in respect of implementation of the arrangement.
Experience suggests that employers often have a launch date already pencilled in, but if this has not been done it would be sensible to examine when this is practical. In working towards this deadline, employers may wish to consider this typical timetable which can be adapted as required.
As salary sacrifice schemes may fall within the DOTAS rules, once the design of the scheme is fixed, the employer should seek advice on whether the scheme is notifiable under DOTAS. If it is, a DOTAS disclosure to HMRC has to be made within tight time limits. The timing requirements and consequences for non-compliance are explained in more detail in HMRC guidance and in Simon鈥檚 Taxes
SEIS and EIS 鈥� overviewThe seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) are very similar schemes which offer substantial tax incentives to investors in companies which qualify. The tax incentives for SEIS and EIS investments are intended to encourage investment in
Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a 鈥榮pecial rate pool鈥�. Expenditure to be allocated to the special rate pool
Indexation allowance and rebasingThis guidance note explains the general rules surrounding the availability of indexation allowance (which was frozen at December 2017) on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview