What is a potential consequence if HMRC deems a salary sacrifice arrangement invalid due to incorrect setup?
Answer
HMRC could deem the arrangement invalid, and the benefit might be treated as a taxable benefit-in-kind.
If the legal requirement of altering the remuneration structure before tax application is not met, HMRC may rule the arrangement invalid, subjecting the full original salary to tax and NI, and potentially taxing the received benefit.
Related Questions
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