The Chancellor of the Exchequer, Philip Hammond, recently announced some changes to salary sacrifice schemes in his Autumn Statement. He confirmed the Government’s intention to change the makeup of the majority of schemes from April 2017.
As you’ve likely seen lots of information flying around in the news and specialist media on the topic we thought you would value an update from us stating why it is that our scheme remains fit-for-purpose when other schemes may not.
Mr. Hammond confirmed that the income tax and employer National Insurance advantages of salary sacrifice schemes will be removed from all benefits other than pensions (including advice), childcare, cycle to work and ultra low emission cars from 6th April 2017. This is confirmed in Section 3 of HMRC’s Consultation on Salary Sacrifice for the Provision of Benefits in Kind.
The supply of IT equipment by employers to employees with payment from salary can be treated like other Benefits in Kind (BIKs). Namely, in an ‘employee NICs efficient’ way, as described in HMRC’s Employment Income Manual EIM21699 – “… to provide a computer to an employee for private use… the Employment Income tax treatment is the same as for any asset provided by an employer for private use”.
Techscheme is already designed in a way – that ensures there is only National Insurance savings for employees. This means we don’t need to update our paperwork, change any employee messaging or do anything differently whatsoever . Great news, eh?
Techscheme typically saves employees 12% on a given product’s value and 95% of users state that spreading the cost was one of their main motivations for using the scheme.
You can see example savings below:
|UE Boom 2||£169.99||£20.40||
As such, we would encourage you to make the most of this fantastic benefit.