Additional Benefits
Holiday exchange, Childcare vouchers, Cycle to work and Retail discount schemes can make all the difference
Salary Sacrifice provides an opportunity for employees and employers alike to benefit from a reduction in taxes. The employee will not be liable for income tax or NI on any salary sacrificed and the employer will not liable for NI. Employees can sacrifice salary to pay for childcare vouchers, cycle to work and holiday exchange benefits as well as their workplace pension contribution,
Childcare Vouchers
Childcare vouchers are simply a different way to pay for childcare which still allows parents to choose what kind of care they think best suits their child. The most popular way of providing childcare vouchers is through a salary sacrifice arrangement, whereby an employee agrees to a reduction in their salary in return for an equivalent value of childcare vouchers which will be exempt from tax and National Insurance (up to the maximum of £55 per week or £243 per month*).
This means parents could save over £900 per year (for standard rate tax payers) or over £600 a year (for higher rate tax payers) depending on individual circumstances.
Assessment which must be completed when a new scheme members joins, and at the beginning of each tax year thereafter.
Cycle to Work schemes
Cycle to Work is one of the UK’s fastest growing and most sought after employee benefits. Cycle to Work schemes allow your employees to make savings on a brand new bike and permitted accessories. Savings are made through a tax exemption as part of the Government’s Cycle to Work initiative. The benefits U Cycle to Work scheme is offered in partnership with Evans Cycles. More and more employers are adding it to their benefits portfolio and enjoying the significant advantages it brings to everyone.
Cycle to Work schemes are usually implemented via a salary sacrifice arrangement whereby employees agree to a regular deduction from gross salary to cover the cost of the benefit, therefore making tax and National Insurance savings. Bikes and safety accessories are purchased by the employer and then leased back to the employee over a fixed hire term, usually 12 or 18 months.
Holiday Exchange
Holiday Exchange allows employees to take extra time off work, on top of regular annual leave and save organisations thousands of pounds each year!
The scheme is run as a salary sacrifice benefit, which means that employees can ‘buy’ additional leave using their salary for the amount of leave requested. The costs are then spread across the year so that monthly salaries only decrease by a fraction of the total cost.
Whether for a special holiday or occasion, for child or dependent care, moving house and DIY or just extra time to relax, a holiday exchange scheme is the answer. An attractive and desirable employee benefit as well as an easy way for companies to cut costs without making cuts, it’s a win-win benefit for employer and employee.