The salary sacrifice schemes gain popularity for workers and employers, stimulated by an increase in national employers' insurance contributions, income tax thresholds and more people falling into the tax trap of 60% for those who earn between 100,000 and 125,140 £.
These regimes offer an attractive perspective: abandon part of your income instead of an advantage – and reduce your taxable income below the £ 100,000 cliff.
The situation is particularly striking for parents of young children. In England, if the net wages of a parent of £ 100,000, they lose precious services of free child care. Win more than that and, from September, a parent with two children in a London nursery should earn £ 149,000 – an increase in wages of almost 50% – to compensate for the loss of benefits, according to calculations of the Institute for tax studies.
Companies are only supposed to offer a salary sacrifice in certain areas, including retirement contributions, work nurseries, childcare vouchers and bikes and electric cars.
But the Financial Times heard reports on certain employers offering other advantages, such as store vouchers and grocery stores. We would like to hear readers who have had current or preceding employers offer unusual wage sacrifice services, or who have experienced a bad salary sacrifice scheme. All responses will be processed in the strictest confidence.
Please send us an email to Money@ft.com
