Salary sacrifice: benefits in kind

savingpennies

My employer if offering a scheme whereby we can purchase electronic goods (TVs, cameras, computers, etc) as part of a salary sacrifice scheme. I'm tempted by the scheme to purchase a TV - I've researched the model on Which? and it seems fine and the net price seems cheaper compared to buying it via a retailer. But I'm not sure of the consequences and whether this saves me money in the long run. I am a basic rate tax payer. Can anyone help?

saintjammyswine

Having done the same it does save money as the sacrifice is taken before tax and therefore you dont pay tax on the amount you are paying from your salary. Small amounts I know but every little helps!

InsideInsurance

saintjammyswine wrote: »

Having done the same it does save money as the sacrifice is taken before tax and therefore you dont pay tax on the amount you are paying from your salary. Small amounts I know but every little helps!

No, because its not an allowable tax free benefit you will get a BIK for the item at its price. As such you need to ensure the employer discount is sufficient to cover the tax

saintjammyswine

No, it is taken from wages before the tax etc is deducted therefore no tax is paid on the monthly deduction for the items.