When can an employer disturb an employees existing terms & conditions because of a lifestyle change and what constitutes such a change?
Other benefits, apart from those listed above, may be only exempt from charge to income tax under the benefits code. The issue of “ease of convertibility” giving rise to a charge under the “earnings” rules is still, therefore, relevant. HMRC accepts that certain “lifestyle changes” may justify changing a salary exchange arrangement before the intended period has elapsed. • HMRC does not define ‘lifestyle change’. Generally this term is used to refer to unforeseen life events (e.g. redundancy of a partner, pregnancy of employee or partner, marriage or divorce of employee) where an employer might agree to revisit an existing contractual arrangement to take account of a change in circumstances. • This may happen if an employee has agreed terms and conditions for a set period and within that period an event happens that means the arrangements are no longer suitable. • The arrangements could include an agreement for the employer and employee to end the existing terms & conditions early in t
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