Since 6 April 2016 using travel and subsistence costs as part of a salary sacrifice arrangement has been banned however HMRC is aware that some employers haven't got the message. While you can continue to pay your employees HMRC's approved flat rate travel and subsistence payments, any corresponding reduction you have made in their salaries must be reversed.
The way to do this is to pay your employees salary instead of the travel and subsistence allowances then renegotiate payments of the latter. This will increase your costs but the alternative is to risk action by HMRC. This could leave you liable for the cost of the extra tax and NI that would usually be payable by your employees. There could also be a fine.
For more information or guidance on this issue, please contact us on 0114 267 0911 or email firstname.lastname@example.org