How to deal with maternity pay, salary sacrifice and childcare vouchers

Author: Paul Tew

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

• Appreciate that salary sacrifice is a contractual arrangement between employer and employee.
• Remember that a salary-sacrifice arrangement must be effective in achieving its intended purpose.
• Remember that HM Revenue and Customs will not provide advice on setting up, drafting, operating or varying salary-sacrifice arrangements.
• Be aware of the impact that a salary-sacrifice arrangement may have on statutory maternity pay.
• Be aware of the relationship between statutory maternity pay, salary sacrifice and childcare vouchers.
• Take into account that a "lifestyle change" such as expecting a baby may justify changing a salary-sacrifice arrangement before the intended period has elapsed.
• Remember that a salary-sacrifice arrangement may reduce an employee's entitlement to contractual maternity pay.