Tom Cartwright reviews the decision of the First-Tier Tribunal in Reed Employment, which casts considerable light on salary sacrifice arrangements.
The First-Tier Tribunal's decision in Reed Employment plc v HMRC [2012] UKFTT 28 casts considerable light on salary sacrifice arrangements and their effectiveness. It is of particular relevance to employment businesses and umbrella service companies employing temporary workers and contracting out their services to end users. However the Tribunal's findings on what constitutes an effective salary sacrifice and a contract of employment for ITEPA 2003 purposes will be of much wider relevance.
Reed: the facts
Reed Employment implemented two varieties of a travel and subsidence allowance salary sacrifice scheme from 1998 to 2006. The original scheme was replaced in 2002...
