What is Salary Sacrifice and how do you benefit from it, we hear you ask?
If an employee chooses to make a salary sacrifice, they will take a reduction in gross salary. In return they can receive benefits including childcare vouchers, gym membership and a fully electric company car. As the sacrifice is executed before tax and national insurance contributions are even applied, employees can effectively save hundreds!
From a company’s perspective, this scheme will provide an opportunity for employers to also save money when employees are offered electric cars.
If you’re looking to get figures to match your current financial situation, we would highly recommend booking onto our Masterclass and speaking to our experts!
This example is for a 40% taxpayer, receiving fuel for private mileage. / Tax Code: 1250 / Based on approximately 10,000 miles/A.
Both tables savings can be shared between the employer and employee, the employee could even receive the full amount.