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How are schemes such as TechScheme not ORA's?

How are Salary Sacrifice schemes such as TechScheme not caught as ORA's?

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I've been passed the following link: www.techscheme.co.uk which suggests employees can sacrifice their salaries create savings when buying new tech (laptops, phones etc.) 

I've had a look at the FAQs ont he website and I cannot see how this works, surely where the employee has a choice between the cash and the BIK, the ORA rules will come into effect and negate any obtainable tax advantage?

Do these kind of schemes just rely on the lack of policing of these rules? 

 

 

 

 

 

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By paul.benny
12th Sep 2019 13:56

Agree that on the face of it, techscheme falls within the ORA rules

Why don't you contact them and ask how they make it work?

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Psycho
By Wilson Philips
12th Sep 2019 14:16

Well, if you read the blurb carefully (admittedly I haven't read all of it) there is no mention of a tax saving. It's all about an NI saving, whereas the ORA provisions are largely aimed at tax. The employee will still pay income tax - based on the higher of the asset cost and salary foregone - but no primary NI (on the sacrifice element). Employer will continue to pay secondary NI but as Class 1A.

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Replying to Wilson Philips:
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By Wardy682
12th Sep 2019 17:34

I'm pretty sure the ORA rules are designed to mitigate both Tax and NIC advantages?

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Replying to Wardy682:
Psycho
By Wilson Philips
12th Sep 2019 18:03

I’m willing to be persuaded if you can point me to the relevant authority.

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