Through our partners, we are able to offer company finance for directors or buisness owners.
How it works…
|Example where employee owns the company|
|The employer (Company) buys the voucher for the employee (Director).
To facilitate the salary sacrifice the employee’s salary is increased by the price of the voucher. The same amount is given up as a sacrifice meaning the salary remains the same. However the effect of this is that the amount of remuneration taken as dividend is reduced by the price of the voucher. So the employee saves the amount of tax that would otherwise have been due on the dividend sacrificed.
The employer can offset the entire cost of the voucher as a business expense and so saves corporation tax on the price of the voucher. It also save the employer’s NI
The combined employer and employee savings are around 54%.
NB this is an example. Your circumstances may be different. You should consult your financial or business advisor.Please get in touch if you have any questions.