salary sacrifice - what next?

[sawman]

I work for the nhs,

I currently pay for my parking permit on a salary sacrifice - it seems reasonable to pay for a work expense out of my gross salary.

My employers run a salary sacrifice lease car deal, and I can see how this fits within company car tax issues

But today I have received a flyer advertising a new salary sacrifice deal allowing me to buy home electronics, ranging from washing machines & Xbox, through to tellys and ipads - it just seems a bit odd, whats the tax aspect to this?

[The Leaper]

Hmm..the UK public etc condems tax avoidance by USA multinationals, but when it comes to one's personal finances, straightforward tax avoidance arrangements look wholly justifiable!

R.

[Eric Mc]

Salary sacrifice schemes work best when the item or service being offered to the employee are goods or services which HMRC would not ordinarilly treat as a benefit in kind - such as pension contributions, child care vouchers or items bought under the cycle to work scheme.

At one time computer equipment was also something an employer could supply to an employee without a BIK charge - so quite a few salary sacrifice schemes were set up for the supply of computer equipment. The BIK exemption was laer removed due to perceived abuses by employers.

[LC23]

Probably being offered to save you the NIC. You sal sac and don't have to pay tax or NIC on the salary sacrificed. The item is then paid for and provided by the employer (or via vouchers?). This is a taxable benefit but not liable to Class 1 NIC. So if you are a basic rate payer this saves you 12% NIC. Plus your employer might be able to negotiate a discount on the vouchers/goods being provided.