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04 Sep 2017

Employees welcome salary sacrifice schemes for home technology

Salary sacrifice schemes that help employees to buy home technology products can play a “vital role” in closing the digital skills gap. That´s according to specialist provider Let´s Connect, which surveyed more than 1,100 employees who have participated in a salary sacrifice scheme.

Such schemes work by enabling employees to agree to sacrifice or ‘exchange´ their pre-tax salary in monthly instalments in return for the home technology package of their choice.

In the survey, 70% said that access to a home technology salary sacrifice scheme has helped them or their family improve their IT skills, and 89% said they would not have purchased the equipment elsewhere, as they could not afford to buy it outright.

The top reasons for taking part in the scheme were:

1. It is paid directly from salary.

2. It helps spread the cost of major purchases.

3. It saves money on high street prices.

And when asked whether they would choose to participate in a home technology salary sacrifice scheme again, 83% said they would.

Helping employees to buy technology products in this way supports education, improves IT skills and provides access to technology to those who otherwise may not afford to do so, explained Let´s Connect.

New HMRC rules on salary sacrifice mean that 100% of tax must be charged to employees over the period of their agreement, but they still make National Insurance savings on the total amount sacrificed.

Steve Prevett, UK sales and marketing director of Let´s Connect, said: “Salary sacrifice remains an effective way for employers to reward their employees´ contribution and for employees to advance their own skills. Despite recent legislation changes, salary sacrifice schemes remain as popular with both employees and employers alike, particularly amongst millennials and Generation Z. We are pleased that the Government, after months of uncertainty, have clarified their position and through the new legislation, continue to support salary sacrifice.

“Technology has become a fundamental part of everyday life but there is still a significant digital skills gap in the UK — we are currently lagging behind many of our European counterparts and rank only as the 16th most productive country in Europe. Salary sacrifice schemes have the potential to increase productivity through digital upskilling, increased education and improved wellbeing.”

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