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SALARY SACRIFICE SUPPLEMENTAL MATERIALS

Table Of Contents

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Deductions and Taxes 2Tech 3Parking Up Until April 2017 4Parking From April 2017 5Car Leasing (Up until April 2017) 6Car Leasing (From April 2017) 7Gym 8Cycle to Work 9Workplace nursery 10Childcare vouchers 11Eligibility 12

Facts and figures are accurate as of April 2017

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DEDUCTIONS AND TAXES


13.8% represents the Na>onal Insurance Contribu>on which employers pay on an employee's whole salary

Na>onal Insurance HMRC Guidance

13.8% Employer NI

12% represents the Na>onal Insurance that is deducted from an employee's salary if you are a Primary Threshold Na>onal Insurance payer.


12% Employee NI

Primary Threshold

2% represents the Na>onal Insurance that is deducted from an employee’s salary if you are a Upper Earnings Limit Na>onal Insurance payer.


2% Employee NI

Upper Earnings Limit

20% represents the Basic Rate tax that is deducted from an employee's salary.

PAYE Tax HMRC Guidance

20% Income Tax Basic Rate

40% represents the Higher Rate tax that is deducted from an employee's salary.

PAYE Tax HMRC Guidance

40% Income Tax Higher Rate

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions










TECH This scheme gives employees a way to purchase and then spread the cost of new computers, tablets and phones.

Provided By: Clarkwood Enterprise

How The Benefit Is Paid For: The device is bought outright by the employer and the cost of the device is spread across 12 months with payments being made out of the employee's salary.

What Savings Are Available:

What Else Do I Need To Know? • This benefit is considered a ‘Benefit In Kind’ meaning there are no Tax savings for the

employees, and the employer cannot recoup their Na>onal Insurance Contribu>on. • Any outstanding payments due if an employee leaves, can be recouped in the final

pay-check.

Getting Your Product? 1. The employee clicks through to the Clarkwood Enterprise Portal. 2. The employee selects the desired item and adds it to the basket. 3. To checkout the basket, the employee will be asked to register their details and acknowledge the

T&Cs. 4. The employee will receive an electronic hire agreement to be submi\ed online. 5. The order Confirma>on is passed onto the employer. 6. The employer approves order and se\les the invoice with Clarkwood Enterprise and makes

salary reduc>ons from subsequent payslips in equal monthly instalments. 7. The employee receives a no>fica>on regarding delivery and receives the item from DPD


Employee

Primary Threshold Na>onal Insurance OR Upper Earnings Limit Na>onal Insurance

� �

12% 2%

PARKING UP UNTIL APRIL 2017 This scheme gives employees a way to purchase a parking permit and split payments over 12 months.

Provided By: Enjoy Benefits

How The Benefit Is Paid For: The parking permit is bought outright by the employer and the cost of the permit is spread across 12 months with payments being made out of the employee's salary.

What Savings Are Available (Up Until April 2017):

What Else Do I Need To Know? • Enjoy Benefits assume they can nego>ate an addi>onal discount. • Any outstanding payments due if an employee leaves, can be recouped in the final

pay-check. • Parking must be for when employee is at work.

Getting Your Product? 1. The employee logs onto the Enjoy Benefits portal and provides details of the parking loca>on

and provider. 2. Enjoy Benefits contact the parking provider to verify fees and additional discounts for buying

the permit annually. The fees and savings are then communicated to the employee.3. Enjoy Benefits then purchases the permit and invoices the employer4. The employer settles invoice and repayments are made over 12 months from the employee's

salary.5. The employee receives their parking permit.


Employee Employee Employer

Primary Threshold Na>onal Insurance OR Upper Earnings

Limit Na>onal Insurance

Basic Rate Tax OR Higher Tax Rate

Na>onal Insurance Contribu>on

�

13.8%� �

12% 2%� �

20% 40%

PARKING FROM APRIL 2017 This scheme gives employees a way to purchase a parking permit and split payments over 12 months.


How The Benefit Is Paid For: The parking permit is bought outright by the employer and the cost of permit is spread across 12 months with payments being made out of the employee's salary.

What Savings Are Available (From April 2017):

What Else Do I Need To Know? • Enjoy Benefits assume they can nego>ate an addi>onal discount. • This benefit is considered a ‘Benefit In Kind’ meaning there are no Tax savings for the

employees, and the employer cannot recoup their Na>onal Insurance Contribu>on. • Any outstanding payments due if an employee leaves can be recouped in the final

pay-check. • Parking must be for when employee is at work.

Getting Your Product? 1. Employee logs onto Enjoy Benefits portal and provides details of the parking loca>on and

provider. 2. Enjoy Benefits contact the parking provider to verify fees and additional discounts for buying

permit annually. The fees and savings are then communicated to the employee.3. Enjoy Benefits then purchases the permit and invoices the employer4. Employer settles invoice and repayments are made over 12 months from the employee's

salary.5. The employee receives their parking permit.


Employee


� �

12% 2%

CAR LEASING (UP UNTIL APRIL 2017) This scheme gives employees a way of leasing a vehicle and maintaining it whilst splibng the payments over 24 - 48 months.

Provided By: Fleet Evolu>on

How The Benefit Is Paid For: The car leasing costs are deducted from the employee's salary with the cost of being spread across 24 - 48 months.

What Savings Are Available (Up To April 2017):

What Else Do I Need To Know? • Employees can save up to 45% regardless of tax bracket. This % varies based on the efficiency of

selected vehicle. • The employer can save up to 13.8%. Savings beyond 3.8% reduce savings for the employee. • Any outstanding payments due if an employee leaves can be recovered by insurance setup in the

scheme.

Getting Your Product? 1. The employee logs onto the Fleet Evolu>on Portal and receives a quote for a vehicle. 2. The employee accepts the quote and places an order.3. The employer receives quote and advises Fleet Evolution if the employee is eligible for the

scheme. Repayments are then made over 24-48 months from the employee's salary.4. The vehicle order is placed and delivery arranged with employee.5. The employee receives contact every sixth months from Driverline (courtesy calls, mileage

updates, service bookings, insurance renewals).6. Six months prior to contract end date, employee is asked if they want to look at a new lease,

buy or return the vehicle.


Employee Employer

Savings up to 45% Regardless of Tax Bracket Na>onal Insurance Contribu>on

�

UP TO 45%

�

13.8%

CAR LEASING (FROM APRIL 2017) This scheme gives employees a way of leasing a vehicle and maintaining it whilst splibng the payments over 24 - 48 months.

Provided By: Fleet Evolu>on

How The Benefit Is Paid For: The car leasing costs are deducted from the employee's salary with the cost of being spread across 24 - 48 months.

What Savings Are Available (From April 2017):

What Else Do I Need To Know? • Employees can save up to 45% regardless of tax bracket. This % varies based on the efficiency of

selected vehicle. From April 2017 higher savings will only con>nue for cars which emit less than 75 Co2g/Km.

• The employer can save up to 13.8%. Savings beyond 3.8% reduce savings for the employee. • Any outstanding payments due if an employee leaves can be recovered by insurance setup in the

scheme.

Getting Your Product? 1. The employee logs onto the Fleet Evolu>on Portal and receives a quote for a vehicle. 2. The employee accepts the quote and places an order.3. The employer receives quote and advises Fleet Evolution if the employee is eligible for the

scheme. Repayments are then made over 24-48 months from the employee's salary.4. The vehicle order is placed and delivery arranged with employee.5. The employee receives contact every sixth months from Driverline (courtesy calls, mileage

updates, service bookings, insurance renewals).6. Six months prior to contract end date, employee is asked if they want to look at a new lease,

buy or return the vehicle.


Employee Employer

Savings up to 45% Regardless of Tax Bracket Na>onal Insurance Contribu>on

�

UP TO 45%

�

13.8%

GYM This scheme gives employees a way to purchase a gym membership and split payments over 12 months.


How The Benefit Is Paid For: The gym membership is bought outright by the employer and the cost of membership is spread across 12 months with payments being made out of the employee's salary.


What Else Do I Need To Know? • Enjoy Benefits assume they can nego>ate an addi>onal discount. • This benefit is considered a ‘Benefit In Kind’ meaning there are no Tax savings for the

employees, and the employer cannot recoup their Na>onal Insurance Contribu>on. • Any outstanding payments due if an employee leaves can be recouped in the final

pay-check.

Getting Your Product? 1. The employee contacts the leisure provider and confirms the upfront costs for a 12 month

membership, then logs onto Enjoy Benefits portal and confirms the rates given by the gym.2. Enjoy Benefits contact the gym to verify fees and negotiates a discount for buying the

membership annually. The fees and savings are then communicated to the employee.3. Enjoy Benefits then purchases the gym membership and invoices the employer.4. The employer settles the invoice and repayments are made over 12 months from the

employee's salary.5. The gym membership is released to the employee.


Employee


� �

12% 2%

CYCLE TO WORK This scheme gives employees a way to purchase and then spread the cost of bicycle

Provided By: Enjoy Benefits or Halfords

How The Benefit Is Paid For: The bicycle is bought outright by the employer and the cost of bicycle is spread across 12 months with payments being made out of the employee's salary.


What Else Do I Need To Know? • Enjoy Benefits es>mate an addi>onal 10% discount off the cost of the bicycle. • Halfords offer free accessories up to the value of 10% of the cost of the bicycle. • A fair market value is paid by the employee at the end of the first year. This is 3% if the bike is

under £500 or 7% if the bike is under £1000. Aher an addi>onal 4 years the fair market value cost is refunded if the bike is returned, alterna>vely the bicycle can be kept and the fair market value is retained.

• Any outstanding payments due if an employee leaves can be recouped in the final pay-check.

Getting Your Product? 1. The employee locates their desired bicycle and confirms details on the Enjoy Benefits portal.2. Enjoy Benefits then purchase the bike and invoices the employer3. The employer settles invoice and the bike and repayments are made over 12 months from the

employee's salary.4. The bicycle is released to the employee.5. At the end of Year 1 the fair market value is paid.6. At the end of Year 5, the fair market value is refunded dependant on whether the employee

wants to retain the bicycle.







�

13.8%� �

12% 2%� �

20% 40%

WORKPLACE NURSERY This scheme gives employees a way to save money on nursery costs, by crea>ng a partnership with the selected nursery.


How The Benefit Is Paid For: Once a contract is established between the nursery and the employer (facilitated by Enjoy Benefits), the employer makes monthly payments towards the nursery from the employee's salary.


What Else Do I Need To Know? • A 10% admin fee is deducted from the employee’s savings. • A ‘Generous Contribu>on’ up to the value of £1200 per contract renewal is made from the

employer’s savings. This represents the employer’s ‘stake’ in the nursery. The contribu>on varies based on monthly nursery costs.

• Should an employee choose to stop using the benefit before the agreed termina>on date, the nursery funding will con>nue to be paid to the nursery for projects agreed un>l the end of the contracted period.

Getting Your Product? 1. The employee highlights the nursery of choice to their employer.2. Enjoy Benefits and the employee meet with the chosen nursery to agree plans and actions for

operation of the nursery. Minutes of these meetings are sent to the employee and employer.3. Enjoy Benefits works with the employer to identify costs that should be deducted from

employee's salary and what contribution is made by the employer.4. The employer provides the child a place at the chosen nursery5. Enjoy Benefits meet with the nursery throughout the period of benefit, reporting the outcome of

these meetings to the employer and the employee. Both parties must agree to read these notes and provide Enjoy Benefits with feedback.







�

13.8%� �

12% 2%� �

20% 40%

CHILDCARE VOUCHERS This scheme gives employees a way to save money on childcare by purchasing vouchers which can be exchanged with childcare providers.


How The Benefit Is Paid For: The employee sets a maximum amount of salary they wish to sacrifice in exchange for childcare vouchers.


What Else Do I Need To Know? • A 5% admin fee is deducted from the employer's savings. • Savings are capped at £243 a month for a Basic Rate Tax payer • Savings are capped at £124 a month for a Higher Rate Tax payer. • Scheme is ending April 2018.

Getting Your Product? 1. The employee logs onto the Enjoy Benefits platform and sets their maximum amount of salary

they wish to sacrifice.2. The employee is presented with an option of how they wish to receive their benefit:

• A Direct payment is transferred to the Childcare provider. • A physical voucher which can then be emailed or printed and delivered to the Childcare

Provider. • A fund can be setup where vouchers are accrued and released whenever needed.

3. Payroll information is communicated to the employer and subsequent payments are made from employee’s salary.







�

13.8%� �

12% 2%� �

20% 40%

ELIGIBILITY • Sacrificed salaries must not bring an employee below the minimum wage. • Employees who earn the na>onal minimum wage are not eligible. • Directors who pay themselves a low wage and earn through dividends should check with their

accountant first regarding eligibility. • If you are self-employed, you are not eligible for salary sacrifice


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