Does Salary Sacrifice Reduce Employer National Insurance Contributions?
Are rising costs and tightening budgets squeezing your business? Recent changes to National Insurance contributions may have left you feeling the need to be more cost-conscious.
What if you could save money without cutting employee benefits or morale? Salary Sacrifice could be the answer to keeping your employees happy.
But does Salary Sacrifice reduce employer NI contributions whilst keeping your employees content?
Yes!
Sounds too good to be true? It's not.
Keep reading to discover how it works, and how it can benefit both your bottom line and your team.
What Is Salary Sacrifice?
Salary Sacrifice allows employees to exchange part of their salary for non-cash benefits, reducing their taxable salary.
Imagine offering your employees valuable perks - such as competitive pension schemes, bicycle ownership and car leasing - while simultaneously reducing taxable income.
The employee gets a valuable benefit, whilst paying less tax and reducing their National Insurance Contribution.
This all helps the employee financially, but does it help the employer too?
How Salary Sacrifice Helps To Reduce Employer NI Contributions
In a word - yes.
NI contributions are based on salaries. When employees sacrifice part of their salary, the employer's NI contributions are calculated on the new, lower salary. For example, if an employee earning £30,000 sacrifices £2,000, the employer’s NI is based on £28,000, saving up to £276. With multiple employees, the savings multiply.
So, how can you take advantage of Salary Sacrifice to lower your employer NI contributions?
Talk to us
If you would like to find out more about our solutions, get in touch.
Salary Sacrifice Schemes That Help Reduce NI Contributions
At Bravo Benefits, we specialise in partnering with you to provide you with the most cost-effective options for your business. Our tailored employee benefits packages, which include Salary Sacrifice schemes, could save you significant costs. We offer several popular Salary Sacrifice schemes that can help businesses reduce their NI contributions while offering employees valuable benefits. Here are a few options:
Car Leasing
Employees can lease a car via Salary Sacrifice, reducing their taxable income and lowering NI contributions for both the employee and employer.
Cycle to Work Scheme
Employees can sacrifice part of their salary for a bike and equipment, promoting health while reducing employer NI contributions.
Workplace Pension Services
Salary Sacrifice allows employees to boost their pension contributions, with employers benefiting from reduced NI contributions as the amount is deducted from pre-tax salary.
Interested? Get your questions answered by one of our consultants.
Additional Benefits of Salary Sacrifice
Salary Sacrifice reduces NI costs but also benefits your business in other ways:
- Attract and Retain Talent: Salary Sacrifice perks help attract top talent and reduce turnover.
- Boost Employee Satisfaction: Employees appreciate valuable perks that reduce their taxable salary.
- Support Employee Wellbeing: Programmes like Cycle to Work promote healthier lifestyles, reducing absenteeism and boosting wellbeing.
How Bravo Benefits Can Help
At Bravo Benefits, we help you create a tailored employee benefits package with Salary Sacrifice options to maximise savings and boost employee satisfaction. Whether it's Car Leasing, Cycle-to Work or Workplace Pension Services, we’re here to guide you.
Ready to Save on Employer NI Contributions?
Salary Sacrifice schemes are a great, cost-effective way to lower NI contributions while offering valuable perks. Contact Bravo Benefits today to start saving!
