Salary sacrifice schemes
Capture, manage and deliver all your salary sacrifice schemes in one place, with full flexibility over how you choose to deliver salary sacrifice benefits.
With a fully HR integrated, harmonised employee benefits platform, we help businesses drive better engagement with their salary sacrifice schemes, leading to increased NI and tax savings for both employers and employees, while reducing overheads and admin.
We’ve helped businesses save over £40 million through salary sacrifice schemes, helping make employee benefits more accessible to their team and helping fund further reward and benefits initiatives.
What is salary sacrifice?
Salary sacrifice is an agreement between you and your employees to reduce their tax and National Insurance contributions in exchange for a non-cash benefit.
Salary sacrifice schemes have gained popularity among many businesses, offering a mutually beneficial system. Common examples of salary sacrifice schemes include cycle-to-work initiatives, car maintenance schemes, and company car benefits. The most common salary sacrifice schemes include bike to work, holiday trading, and car benefits.
What are the benefits of salary sacrifice
For employers, salary sacrifice schemes can have cost savings from the reduction of National Insurance contributions on a portion of the salary sacrificed by employees. Most importantly, offering valuable benefits through salary sacrifice can boost employee morale and overall satisfaction, improving the employee value proposition and helping them to become an employer of choice.
For employees, salary sacrifice helps lead to lower income tax and NI contributions, increasing disposable income, improving their financial well-being. Additionally, employees then gain access to valuable non-cash benefits that can contribute to improving their physical health, mental health and more.
Different salary sacrifice schemes
Salary sacrifice schemes are a great way for both employers and employees to save money on National Insurance and for employees to make tax savings too. The different schemes have other benefits too for both employers and employees.
Here’s a bit more information on our salary sacrifice schemes.
MotorSave
MotorSave is a unique employee benefit scheme designed to help employees save up to 8% on car maintenance.
Holiday trading
Holiday trading schemes can really help companies demonstrate a commitment towards flexible working and improve employee satisfaction.
Childcare vouchers
Many employees still utilise Childcare Vouchers, and any existing Childcare Voucher scheme you have can be hosted alongside our other great salary sacrifice schemes.
Car benefit scheme
Especially with recent government changes, the salary sacrifice car scheme is still increasingly popular and a great way for employers to save money.
Bike to work scheme
Also known as cycle to work, the bike to work scheme is one of the most sought after salary sacrifice employee benefits where employees get a new bike which they pay for out of their salary, saving them money on tax and National Insurance.
Find out more about how salary sacrifice schemes can transform your business
Why choose a salary sacrifice scheme?
Businesses benefit from introducing salary sacrifice schemes in many ways.
- Tax and National Insurance savings can make salary sacrifice schemes extremely cost-effective. The higher the scheme take-up the better the savings.
- A quick and easy set-up where our schemes can be configured to suit your business with scheme eligibility and scheme window options.
- Financial wellbeing benefits lead to improved health and wellbeing for employees through saving and spreading the cost, giving employees more control over their finances and helping avoid bad credit.
- Flexibility over how long employees wish to pay back as part of their salary sacrifice scheme agreement which can be agreed between the employer and employee.
- A diverse range of salary sacrifice schemes to choose from to help employees save on cycling, motoring and even buy and sell annual leave.
- Host, capture and manage salary sacrifice in one place, reducing admin and driving better engagement, leading to increased NI and tax savings for you and your employees.
Browse our employee benefits and engagement options
Salary sacrifice scheme FAQs
What is a salary sacrifice scheme?
Salary sacrifice is an agreement between you and your employees to reduce their tax and National Insurance contributions in exchange for a non-cash benefit. Salary sacrifice is being adopted by a lot of companies as it not only saves them money, but also saves money for their employees. A salary sacrifice scheme is one of these non-cash benefits. The most common salary sacrifice schemes include bike to work, holiday trading, and car benefits.
What is the difference between salary sacrifice and salary deductions?
There is quite a stark contrast between the two and they usually get confused. Salary sacrifice is any benefit paid from your salary at a gross level, meaning before tax and National Insurance contributions. Salary deductions are the opposite, any benefit paid from your salary at a net level, meaning after tax and National Insurance contributions.
How do salary sacrifice schemes work?
The most important tool in salary sacrifice is communication. You will have to notify your employees of the salary sacrifice scheme and agree on the cash value of the benefits for each individual employee. Whether employees want financial or health and wellbeing benefits, this is to ensure they are fairly compensated for the income they are sacrificing.
Get started with salary sacrifice today and transform your business
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Latest salary sacrifice resources
Our salary sacrifice scheme resources offer advice and guidance from industry experts. Check out our employee benefits blog for additional information.
