Guide About Salary Sacrifice and National Wage on Income Tax

Salary sacrifice, also known as salary exchange, is a smart way for employees and employers in the UK to save money alongside they enjoy valuable benefits. Also, such a salary sacrifice arrangement offers employees the non-cash benefits. However, they get this in exchange for a portion of their salary, this salary sacrifice scheme is different than Benefit in Kind (BIK) paybacks that employees get.

Such as arrangement creates opportunities for tax savings and financial optimisation. Other important aspects include statutory maternity pay, and pension contribution to the workplace pension scheme. All these aspects require a detailed analysis. MMBA Accountants has been helping various employees understand the salary sacrifice concept for years, in the UK. So, let discover the details of how salary sacrifice schemes work and their implications for both parties.