What does the term salary sacrifice mean?
A ‘salary sacrifice’ happens when an employee gives up the right to receive part of their cash element of pay due under his or her contract of employment. Under the Childcare Voucher Scheme employees may ‘sacrifice’ part of their pay in exchange for childcare vouchers, with the potential to save money on Tax and National Insurance Contributions. For further information see Salary Sacrifice Questions and Answers on the HMRC web site www.hmrc.gov.
A ‘salary sacrifice’ happens when an employee gives up the right to receive part of their cash element of pay due under his or her contract of employment. Under the Childcare Voucher Scheme employees may ‘sacrifice’ part of their pay in exchange for childcare vouchers, with the potential to save money on Tax and National Insurance Contributions.
