Persuading employer to offer salary sacrifice

Imelda

I work for a small family company. They only offered a pension when forced to and all benefits are the statutory minimum.

It would work out much more tax efficient for me to salary sacrifice some of my income into my pension. I have asked our accounts person numerous times to look into it but have got nowhere.

The firm is now going to outsource the payroll to an outside company so I am taking the opportunity to try to persuade them that it is in their interests to offer salary sacrifice.

They will not have to pay their 14% NI contribution on whatever I sacrifice? My benefits will be based on my lower salary?

Is there anything else?

Any downsides for them? Or me? (I am done having children so no SMP to worry about).

Thank you

BoGoF

How many employees?

Even the reduced NI may not be enough of an incentive when weighed against the additional costs of salary sacrifice.

Imelda

BoGoF wrote: »

How many employees?

Even the reduced NI may not be enough of an incentive when weighed against the additional costs of salary sacrifice.

About 50 employees.
What are the additional costs for them for Sal sac?

lisyloo

An attractive addition to aid with recruitment at no cost to them?

I presume the additional costs are the admin of it.
Not sure why this would cost them more long term, but there will be some set up admin both internal payroll and pension company.

zagfles

National minimum wage issues? NI benefits - do they have part time employees who might go under the NI LEL? Loss of tax relief (vs RAS) for people who don't earn enough to use their personal allowance?