What are the benefits of a Salary Sacrifice?
As an employee, by agreeing to accept a lower amount of salary in return for the loan of computer equipment, you will not pay either Income Tax or National Insurance on the amount agreed up to the 500 per annum limit. You will also be able to save VAT on the value of the Goods, since this will not be payable. The tax and NIC savings will depend on your individual circumstances, but broadly speaking, a basic rate taxpayer can make a maximum saving of 495, and a higher rate tax payer, 615 over the 36 month agreement.
