How much do employees save?

Where the saving really comes from

Salary sacrifice is one of the most cost-effective ways for your employees to get the latest technology. Here is exactly where the saving comes from, with a worked example, and an honest word on the fees so there are no surprises. For the full picture, see our guide to how a salary sacrifice technology scheme works.

Two savings, not one

• National Insurance. Because the cost comes out of gross (pre-tax) salary, the employee does not pay the National Insurance they would otherwise have paid on that amount. For most employees that is 8%.
• Interest. The cost is spread over 12, 24 or 36 months with no interest at all. Retail finance and store cards usually charge interest; a salary sacrifice technology scheme does not.

A worked example

A £1,000 laptop, spread over 24 months

Paid from gross salary: about £42 a month
National Insurance saved: about £80 over the term
Effective cost: around £920, with no interest
Fees: a small per-order admin fee and delivery, shown at checkout

Illustrative only. The exact saving depends on an individual’s tax position, and higher earners save at a different National Insurance rate on part of their pay. TechBenefits is not a tax adviser; individuals should check their own circumstances.

The bit people forget: interest-free

The National Insurance saving is real, but the interest-free spreading is often the bigger benefit. Buying the same kit on a store card or a buy-now-pay-later deal usually means paying interest on top of the price. Through TechBenefits, the cost is simply spread across the term at no interest, so your employees pay for the technology and nothing more.

Is there an income tax saving?

No, and we would rather be straight with you than overclaim. The technology is treated as a Benefit-in-Kind, so income tax still applies to the benefit itself. The saving is on National Insurance, plus the interest-free spreading. It is an honest, HMRC-compliant benefit, not a tax loophole.

What about fees? No surprises

The scheme is free for employers, with no set-up or admin fees to your business. Employees pay a small admin fee and a delivery fee per order, both shown clearly at checkout. That is it, with no hidden costs. We would always rather be upfront.

Quick questions

Do employees save income tax?
No. The saving is on National Insurance, plus interest-free spreading.

Is there any interest?
None. The cost is spread interest-free over your chosen term.

Are there any fees?
Free for employers. Employees pay a small admin fee and delivery per order, shown at checkout.

See it for your team

If you would like to see what your employees could save, we would love to show you. Get in touch at our Employers page or email mhooper@techbenefits.co.uk, and we will walk you through it with a preview of your own branded store.