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NUMBER CRUNCHING
Page 40
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WORK-RELATED TRAINING & SALARY SACRIFICE So how can work-related training be encompassed within a salary sacrifice scheme?
The employee might sign, for example, an agreement that lasts for 12 months and sacrifices £50 per month in return for the employer providing or paying for work-related training that costs £600. The cost of the training is a tax-exempt benefit so the employee saves tax/NIC and the employer saves NIC.
If, using the example above, the amount of salary sacrificed is £50x12=£600, the tax saving would be £132 for a basic rate (22%) taxpayer and £240 for a higher rate (40%) taxpayer. In addition, NIC savings of up to £66 could be available to the employee.
NIC savings for the employer could amount to £76.
They aren't huge savings. But when they are multiplied over a large workforce, the advantages become significant.