Salary Sacrifice Loans Scheme

qoqugiva

MY employer has recently introduced an option for finance with payments taken direct from my pay packet, offered by a company called Salary Finance. I currently have around £8000 of credit on credit cards and was wondering if this would be a better option for me?

[Deleted User]

Possibly. 

What answer do the numbers give you?

jonesMUFCforever

How much beneficial tax will accrue because of this?

lordmountararat

You'll have to do the sums. Before I retired my employer offered very low interest on car loans, but I had to declare it to HMRC as a Benefit in Kind and had to pay tax on the difference between the interest I was paying and what HMRC assessed was the usual rate.

jefaz07

I have a loan with these, it’s not the company offering the finance but a 3rd party company. There is no BIK of any sort. It’s a normal loan, repayments taken through your salary after tax. 

They say they can offer slightly lower rates as it comes out of your wages. 

They take bank details in case you leave and have to service it normally. 

SuperAllyB

jefaz07 said:

I have a loan with these, it’s not the company offering the finance but a 3rd party company. There is no BIK of any sort. It’s a normal loan, repayments taken through your salary after tax. 

They say they can offer slightly lower rates as it comes out of your wages. 

They take bank details in case you leave and have to service it normally. 

So the use of the word "Sacrifice" on the title is misleading.