I have just been informed by a colleague in HR that employees can affect a salary sacrifice to pay for training and receive and effective discount of up to 43% of the costs.
My colleague is under pressure to make such an arrangement for two employees and I would like to ask if anyone has a policy wording that they would be able to share with us dealing especially with the effective variance of contract which is needed to ensure the tax benefits are received.
I must confess I have not heard of this tax break before and so feel more than a little embarrassed as an ex financial adviser.
I am very excited about its potential so I would also be interested to hear from anyone who uses this already about the positives and downsides, if any.
Cheers.
Nick Hindley
3 Responses
Salary Sacrifice Schemes
Hi Nick,
You might find this link useful…
http://www.hmrc.gov.uk/specialist/salary_sacrifice.pdf
Regards
Lee
http://www.toojays.co.uk
and I thought……
….salary sacrifice meant plunging a knife into your pay cheque and then burning it on a small pyre made from broken stationery cupboard pencils…..
Shows how long I’ve been without a salary!
Rus
HMRC is a good site for info
Hi Lee, many thanks, this is where we started and will develop something from scratch if necessary. My colleagues are looking for a policy and process that is already working and approved. The HMRC will not approve a scheme prior to use!
Cheers.
Nick