Employers may face VAT bill for salary sacrifice schemes
A law firm has warned that employers who provide retail vouchers as part of a salary sacrifice scheme may have to pay up to £500 million in unpaid VAT.
The warning comes after the European Court of Justice ruled last week that VAT should be paid on vouchers given to employees. Firms usually recover VAT on the vouchers they buy but often do not account for VAT when passing on the vouchers to employees.
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http://www.personneltoday.com/articles/2010/04/28/55376/salary-sacrifice-and-voucher-schemes-european-court-ruling-means-employers-may-be-forced-to-pay-mill.html
