HMRC provides clarification on the impact of salary sacrifice on statutory payments. The guide outlines the option available to an employer to seek confirmation from the local HMRC office on the tax treatment of salary sacrifice arrangements and outlines the impact on occupational pension scheme contributions and national minimum wage rates.

A salary sacrifice happens when an employee gives up the right to part of the cash remuneration due under his or her contract of employment. Usually, the sacrifice is made in return for the employer's agreement to provide the employee with some form of non-cash benefit. The sacrifice is achieved by varying the employee's terms and conditions of employment relating to remuneration.

In the Question and Answers style guide, HMRC outlines how salary sacrifices must be treated for tax purposes. Full information is available at: http://www.hmrc.gov.uk/manuals/eimanual/EIM42750.htm