Forty-six per cent of employers would like to see a simplification of the salary exchange rules from HM Revenue and Customs (HMRC), says AWD Chase de Vere Consulting.

Research by the group shows that while employers recognise that salary exchange is an effective option when it comes to cutting costs and improving employment benefits, the complicated rules are preventing a broader range of firms from taking up the system.

The scheme, which allows employees to voluntarily sacrifice part of their salary in exchange for enhanced employment benefits, is recognised by HMRC and saves the cost of National Insurance contributions. Employers must, however, follow the complicated procedures correctly if they are to benefit from savings.

"We've guided many employers through the intricacies of setting up salary exchange - and once they understand how it works they are enthusiastic advocates of the system," commented Sean McSweeney, principal consultant of Online and Flex at AWD Chase de Vere Consulting.

"Salary exchange can help employers improve their staff benefits and it can be an important additional tool in managing costs in these difficult recessionary times. We would encourage all employers to consider salary exchange for their staff and we have the resources and experience to set up systems quickly and efficiently within HMRC rules. However, we recognise that many more businesses could benefit from salary exchange and we would welcome any initiatives from HMRC which further improve its take up."

- Pensions Age July 2009

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