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Salary sacrifice for IT - supplier recomendation?

We are looking for a company to manage this for us. Do you know a good one?

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I am working with a company that  employs c. 150 people and are looking to set up a salary sacrifice/loan scheme so employees can buy IT equipment for their homes. Can anyone recommend a  company that is good at handling this for us?

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By Anonymous.
28th Sep 2020 16:02

Didn't realise you could still "do" salary sacrifice for things like that.

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By John Tate London
28th Sep 2020 16:20

It looks like you can and there are loads of companies that offer this service as well as providing the loan. I don't know who to use though - hence the request for a recommendation!
By the way we also plan to introduce the working from home allowance for most senior staff. Not a huge amount - £6 per week but it is tax/NI free if staff qualify

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By Anonymous.
28th Sep 2020 16:29

John Tate London wrote:

It looks like you can

Well my gob has been well and truly smacked then. Honestly thought it had been all but binned.

https://www.moneyadviceservice.org.uk/en/articles/salary-sacrifice-schem...

"Exempt schemes
Some benefits will continue to be offered PAYE and NI-free through salary sacrifice schemes after April 2017.

These include:

childcare
cycle to Work schemes
ultra-low emission cars
pensions (Including advice).

Protection

Employees enrolled in a car, accommodation or school fee salary sacrifice agreement, before 6 April 2017, will be protected until the end date of their agreement, or until 5 April 2021, whichever is sooner.

For all other schemes the protection runs until the end date of the agreement, or until 5 April 2018, whichever is sooner."

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By John Tate London
28th Sep 2020 16:46

To clarify the gob smacking situation:-
Our interest is mainly in using this for IT
The benefit the employee gets is just the saving on NI -as well as a loan that I am imaging the company will provide.
So no saving on PAYE for tech!

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Replying to John Tate London:
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By Anonymous.
28th Sep 2020 16:49

John Tate London wrote:

To clarify the gob smacking situation:-
Our interest is mainly in using this for IT
The benefit the employee gets is just the saving on NI -as well as a loan that I am imaging the company will provide.
So no saving on PAYE for tech!

Ah, OK. To be fair, didn't even know the NI saving survived to I've been updated!

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By John Tate London
28th Sep 2020 16:55

The world is full of wonderous things and each day is a new learning opportunity!

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By paul.benny
28th Sep 2020 17:16

John Tate London wrote:
By the way we also plan to introduce the working from home allowance for most senior staff.

Why only for senior staff? Arguably it is the junior staff who need it most.

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Replying to paul.benny:
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By John Tate London
28th Sep 2020 18:22

Good point Paul. I didn't explain that the business is a chain of 6 restaurants.
The business does not have an office so 'head office' staff work from home.
General managers of each shop also need to spend some time working from home. I called these the 'senior' staff
I completely agree that it is the lower paid in the working environment that need the most help. In the case of the business I am referring to there is a lot done to manage this

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By petercooperuk
28th Sep 2020 16:55

I wonder if this relates to CA27100? Employer expenditure on "machinery" (including computers) for employees or directors as part of the remuneration package is to be accepted as being for the purposes of the trade and capital allowance claims on it should also be accepted. Of course, that's just the corp tax position, not that of the employee ;-)

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Replying to petercooperuk:
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By John Tate London
28th Sep 2020 16:58

Ouch - that hurt my brain Peter. But I'll try and work through that. Thanks
I am just a simple CIMA accountant.

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By psimonparsons
28th Sep 2020 20:11

Yes it’s captured by OpRA so the amount sacrificed is not free of tax however the employee may save on the NI. However, if they are high paid the saving will only be 2%, else 12%. A reduction in student loans 9% and postgraduate loans 6% liability may also result if earnings are normally above relevant threshold.

Some risks, you cannot salary sacrifice statutory payment amounts such as SMP, or furlough etc, so there are risk of times when the sacrifice element stalls, yet the right to continue from non-cash benefits continue. The Employer has a Class 1a liability on the benefit regardless although no secondary Class 1, nor Apprenticeship levy.

As for providers, techscheme.co.uk

It’s worth exploring what the implications are re leavers, redundancy, parental leave and even COVID-19.

Also in relation to maternity, remember that if the scheme ends, then earnings would return to a higher level, that there may be Alabaster implications for SMP increases being backdated.

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By tom123
28th Sep 2020 20:53

If this is 'work' equipment to be used for work purposes, I would expect the employer to provide it FOC with no cost / sacrifice to me as the mere staff member.

Are you sure your staff are up for this?

(and I too am a 'simple' CIMA accountant)

I would expect the employer to also provide the software, and agree that the equipment is to be returned on leaving employment.

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By John Tate London
30th Sep 2020 11:55

Again a good point! All our systems are now web/cloud based so the device someone needs to access this is something like a 'dumb' terminal. These can be purchased for £200 or less.
However all relevant staff already have their own computer. So instead of supplying them another one we think it would be better to help fund their own equipment.
Hence the idea of using the working from home allowance

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