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• Employee Benefits Services Overview
• Flexible Benefits
• Salary Sacrifice
• Benefits Management
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Salary Sacrifice Schemes

It is possible to save your employees and your organisation thousands of pounds by offering certain benefits via a salary sacrifice scheme.

In November 2004 the Treasury gave the green light to salary sacrifice that will save employees and employers more than £1 billion a year in tax and National Insurance Contributions. By taking advantage of tax and national insurance savings for both the employee and the employer, the value and impact of your employee benefits scheme is massively increased whilst improving the company's and employees personal finances.

Currently 72% of employers offer benefits through a salary sacrifice arrangement*. The main types of benefits that have tax and NI efficiencies recognised by the Government are;

• Pension Contributions
• Share Schemes
• Childcare Vouchers
• Bikes for work
• Health Screening
• Bus Travel

These salary sacrifice benefits offer employees the opportunity to make decisions about their reward package maximising tax and NI efficiencies that directly impact on their net income in a positive way.

Employees and employers gain

Salary sacrifice schemes always offer employees the opportunity to model their package and leverage NIC savings even if they do not offer additional budgetary savings to employers. Employees also enjoy tax and NI savings on certain benefits, including childcare and bikes for work. In this way, employers can be seen to offer the added value they so critically need to be seen to be offering to their employees.

For an employer, some of the possibilities of salary sacrifice such as restructuring the pension scheme can offer significant savings in NIC to the company. The sizeable savings that are made can potentially be released to further invest into the organisation's reward strategy.

How does Salary Sacrifice work?

A salary sacrifice arrangement means that deductions for benefits are taken out of gross salary and are therefore free of Tax and NIC. This is achieved by altering the employees contract of employment so they 'sacrifice' a part of their salary in exchange for a non-cash type benefit.

How Motivano can help

Motivano can offer the whole salary sacrifice solution. We have the knowledge to advise you on how to go about implementing such a scheme, arranging agreements with all the key providers to offer these services and finally providing the technology platform to administer the scheme for you.

You can also download a free copy of our Salary Sacrifice White Paper, which takes you through the whole process for setting up a salary sacrifice scheme, as well as looking into the various tax and NI efficient benefits that are currently available.

*Employee Benefits 2009