20% of salary as 'Flexible Benefit' ???

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I have been offered a new job this week and I received a letter outlining the general conditions of employment (Not full terms and conditions).
Everything in the letter seems to be standard apart from a section headed Flexible Benefits. It goes on to say;

"The Company has implemented a flexible benefits package across the entire group and you will have the opportunity to participate in this scheme. Benefits include the opportunity to take up to 20% of salary in discounted retail vouchers and access other options at beneficial rates"
It then details buy and sell options of extra holidays, which again is pretty straight forward.

Are these discounted retail vouchers another way of paying me less or is it a genuine way of cutting the amount of income tax I would pay? The fact it is an option means I can get the best out of the deal either way but would like more info before I decide.

Thank you in advance for your help.

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Sorry for the bump but its back to page 16!!!!!

Elfin123

Hi,

Not sure if it will help but I recieve some vouchers ( capital bonds)as part of my salary and they are taxed ... normally as a benefit in kind and would appear on your P11D that you employer will send to the IR at the end of each tax year.

The rate depends on your tax rate.

I also read recently that benefits such as laptops etc.. will be taxed in future if you use them for personal use.

So I think that if you recieve pay £500 for dicounted goods you will be taxed on that £500.

Hope that is of some help...

xx

Hope this is of some help

Mikeyorks

It's not a P11D benefit - the employer has to operate PAYE on the cost of providing the 'option' (generally - it's the cost you pay them). But there's potentially a benefit in the 'discounted' aspect? But both to your employer, as they buy it discounted, and to you as you get a service cheaper? Always provided, of course, it's one you want !!

Tax details here (and read outwards on the links). Worth noting this comes under HMRC 'avoidance' pages?

http://www.hmrc.gov.uk/manuals/senew/SE11910.htm