SALARY SACRIFICE
WHICH SCHEMES DOES
THIS APPLY TO AND
FROM WHEN?
From 6 April 2017, some benefits will
no longer offer tax exemption but
will provide employees with savings
in employee NI:
•Gym membership
•Technology
•Will writing
•Car parking
•Mobile phones
Employers who want to attract the best
candidates and then reward, motivate
and engage employees. For example,
if an employee paying basic rate tax is
offered gym membership, they may not
save tax but will:
Salary
sacrifice
[sæləri
sæk.rɪ.faɪs]
An agreement
between an
employee and
their employer
for the employee
to exchange
a part of their
salary for a non-
cash benefit.
•Get an annual membership paid
upfront by employer
•Can pay back from salary over 12
months
•Get a corporate rate
•Save 12% on employee NI
What does this mean?
•No paying upfront at best
rate possible
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