Salary sacrifice technology, in plain English
A salary sacrifice technology scheme is one of the simplest, lowest-cost benefits an employer can offer. It lets your employees get the latest technology and pay for it in small monthly amounts from their salary, while saving on National Insurance. It costs your business nothing to run. Here is exactly how it works, what it costs, and how the tax side is handled, in plain English.
What it is
With TechBenefits, your employee chooses the technology they want, a laptop, phone, tablet, headphones, a TV, through your own branded online store. The cost is spread over 12, 24 or 36 months and comes out of their salary before tax. Because it comes from gross pay, they save the National Insurance they would otherwise have paid on that amount, and they spread the cost interest-free. You offer all of this at no cost to the business.
How it works, step by step
- Employer signs up. It is free to join and takes days, not weeks. We set up your branded store and agree your spending limits and rules.
- Scheme launches. We help you tell your employees, with ready-made materials.
- Employees shop. They browse and order through the secure, employer-branded store, and complete a simple digital agreement.
- You approve the order. Every order comes to your administrator to authorise, so you stay in control.
- Monthly salary payments begin. The agreed amount comes from the employee’s gross salary each month, and the technology is delivered straight to them.
What it costs you, and what your employees save
- For you: nothing. There are no set-up fees and no admin fees. It is a fully managed, paper-free scheme with a dedicated account manager, so it adds almost no work for your team.
- For your employees: real savings. They save National Insurance (currently 8% for most employees) on the amount they sacrifice, and spread the cost interest-free rather than paying up front.
Exact savings depend on an individual’s tax position, so figures are illustrative. TechBenefits is not a tax adviser; employers should confirm the treatment with their own payroll or finance team.
The tax side, in plain English
The technology is treated as a Benefit-in-Kind and reported on a P11D, and the scheme runs under a hire agreement. TechBenefits holds the necessary permissions from the Financial Conduct Authority to do this, so there is nothing for you to arrange, and you do not need a consumer credit licence. The saving for the employee is on National Insurance. It is a well-established, HMRC-compliant way to offer technology as a benefit.
Three ways to run it
- Standard salary sacrifice, over 12, 24 or 36 months. The most common choice.
- Gifting, a shorter route where ownership transfers early, handled for you.
- Net Pay, designed for weekly-paid staff. Note this route does not carry the National Insurance saving.
We will help you pick the right one for your workforce when you set up.
What your employees can choose
The latest technology from the brands people actually want, including Apple, Samsung, Microsoft, HP and ASUS, laptops, phones, tablets, headphones, TVs and accessories. TechBenefits is an authorised dealer, so your employees get genuine products, current ranges and real advice, not a limited catalogue.
Setup, support and peace of mind
- Up and running in days, with a dedicated account manager as your single point of contact.
- Fully paper-free, with digital agreements and full visibility of every order.
- Next-day, insured delivery straight to the employee.
- A 14-day no-quibble returns policy, and an in-house repair centre if anything ever goes wrong, in or out of warranty.
We keep it about the tech
We only offer technology. Not white goods, not furniture, not general household bits and pieces. We could, some schemes have gone that way, but we do not think a technology benefit should turn into a catalogue of fridges and chairs.
This benefit is meant to help your employees get the technology they will genuinely use and love, chosen and supported by a team who know it inside out. That focus is deliberate, and it is one of the things employers tell us they value most: they know exactly what their employees are buying, and it is always real technology. Tech we know and love.
Common questions
Is it really free for employers?
Yes. No set-up or admin fees.
How much do employees save?
They save National Insurance (currently 8%) on the amount sacrificed, and spread the cost interest-free.
Do we need to be a certain size?
No. It works for businesses of all sizes, and you set the limits and rules.
Is it a lot of admin?
No. It is fully managed and paper-free, with very little for your team to do.
What happens if someone leaves?
There are simple options to take ownership of the device or return it, and we manage the process with you.
Bring it to your team
If you would like to see how a salary sacrifice technology scheme could work for your employees, we would love to show you. Get in touch at our Employers page or email mhooper@techbenefits.co.uk, and we will arrange a quick, no-pressure walkthrough with a preview of your own branded store.
