The Chancellor Philip Hammond is said to be preparing a to launch a purge on job perks such a health checks, gym memberships, mobile phones and company cars.
The latest Sunday Telegraph said: “The Treasury believes the rapid growth of so-called salary sacrifice schemes is costing too much in lost income tax and national insurance contributions.”
But “major companies have written to the Government warning they would be forced to scale back free medical checks for staff, undermining attempts to keep the country healthy.”
Employees do not pay income tax on the perks, and the company does not pay national insurance.
Employees will have to pay for the perks through work if the changes are announced.
The annual cost of a phone contract was put at £140 and a health check £240 for health checks.
A Whitehall source said pensions contributions, childcare benefits and cycle to work schemes would be exempted from the changes due to be announced in tomorrow’s autumn statement.
Private health insurance schemes will also not be affected, said the paper.
Jeremy has been a journalist for 30 years, 20 of which have been in business-to-business automotive. He was a writer and news editor on AM-sister brand Fleet News for three years before setting up the AM website. For the last five years he has been Bauer B2B’s head of digital helping to manage the digital assets of AM, together with Fleet News, Commercial Fleet, Rail and Smart Transport.
Kel prince - 22/11/2016 14:09
I note that private health insurance is not to be affected by the Budget but of course it has a built in penalty with increases in insurance tax. When will someone in government accept that health insurance saves the government money ?