What is a salary sacrifice arrangement and how do I make my savings?
A salary sacrifice happens when an employee gives up the right to receive part of the pay due to them under their contract of employment in return for the employer’s agreement to provide some form of non-cash benefit, in this case the loan of a bicycle and related equipment. A summary of the advice from the HM Revenue & Customs is available from their web site. You are paying back the loan on your goods from gross – rather than net – salary for the 12 months of the hire period.
