Lewin Higgins-Green

This Practice Note is intended to provide an overview of the Optional Remuneration arrangement (OpRA) rules introduced from 6 April 2017 which affect the way in which the taxable value of benefits-in-kind provided by employers to employees is calculated in circumstances where the employee has either given up the right to receive alternative cash (or other earnings) in exchange for a benefit, or has been given a choice between receiving cash (or other earnings) and a benefit. This Practice Note is written in partnership with Lewin Higgins-Green of FTI Consulting.

This Practice Note summarises the taxation of internationally mobile employees and directors in relation to securities options from 6 April 2015. It provides tabular guidance on tax treatment and PAYE reporting and compliance considerations, distinguishing between the different treatment that can apply, depending the UK tax residence and other changes to the international mobility conditions of the option holder during the relevant period. Written in partnership with Lewin Higgins-Green at FTI Consulting.

The purpose of this Practice Note is to summarise the key features of salary sacrifice arrangements (more recently known as optional remuneration arrangements), their key drivers, advantages, risks and considerations of their implementation, and the contexts in which they are used. This Practice Note has been produced in partnership with Lewin Higgins-Green of FTI Consulting.

This Practice Note explains the key features of the employment income tax and National Insurance contribution (NICs) legislation that support salary sacrifice arrangements and the tax consequences of wider optional remuneration arrangements, whether on an individual basis or collective basis across a workforce, and which dictate the practical requirements for implementing a salary sacrifice scheme. This Practice Note is produced in partnership with Lewin Higgins-Green of FTI Consulting.

This Practice Note provides details of the most common types of salary sacrifice arrangements, namely pension contributions, employer supported childcare and the cycle to work scheme. Other common arrangements are also summarised. This Practice Note also introduces the wider concept of optional remuneration arrangements (OpRAs) and their implications. This Practice Note has been produced in partnership with Lewin Higgins-Green of FTI Consulting.

A salary sacrifice involves an employee giving up a right to receive part of their cash salary in exchange for a defined non-cash benefit. The arrangements must constitute a variation of the employment contract. This is a precedent letter to be signed by both the employer and the employee acknowledging the change to the terms and conditions of the employee’s contract of employment as a result of the salary sacrifice arrangement (also sometimes known as the optional remuneration arrangement). This Precedent is produced in partnership with Sam Whitaker of Shearman & Sterling LLP and Lewin Higgins-Green of FTI Consulting LLP.

A salary sacrifice involves an employee giving up a right to receive part of their cash salary in exchange for a defined non-cash benefit. Once a salary sacrifice scheme (also sometimes known as an optional remuneration arrangement) is established, clearance can be obtained from HMRC as to its impact for tax and National Insurance contributions purposes. This is an example letter to be sent to HMRC in order to obtain such clearance. This Precedent is written in partnership with Lewin Higgins-Green of FTI Consulting.

A salary sacrifice involves an employee giving up a right to receive part of their cash salary in exchange for a defined non-cash benefit. This is a precedent letter from the employer to the employee inviting the employee to enter into the salary sacrifice arrangements (also sometimes known as optional remuneration arrangements) and explaining the consequences of such an arrangement on the employee’s contract of employment and the next steps should the employee wish to participate. This Precedent is written in partnership with Lewin Higgins-Green of FTI Consulting.

A salary sacrifice involves an employee giving up a right to receive part of their cash salary in exchange for a defined non-cash benefit. This is a Precedent letter from the employer to the employee acknowledging the employee’s agreement to the salary sacrifice arrangement (also sometimes known as the optional remuneration arrangement) and explaining its effect on the employee’s cash salary. This Precedent is written in conjunction with Lewin Higgins-Green of FTI Consulting LLP.

A salary sacrifice involves an employee giving up a right to receive part of their cash salary in exchange for a defined non-cash benefit. This is a precedent letter from the employee to the employer confirming their agreement to the salary sacrifice arrangement (also sometimes known as an optional remuneration arrangement). This Letter is written in conjunction with Lewin Higgins-Green of FTI Consulting LLP.

This FAQ template is a set of questions for the employee in regard to their salary sacrifice arrangement. It is intended to supplement the suite of salary sacrifice documents and should be sent by the company to the employee with the initial letter inviting the employee to join the salary sacrifice scheme. A salary sacrifice arrangement (also sometimes known as an optional remuneration arrangement) involves an employee giving up a right to receive part of their cash salary in exchange for a defined non-cash benefit. This Precedent is written in partnership with Lewin Higgins-Green of FTI Consulting.