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What can salary sacrifice be used for

A list of tax efficient benefits

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Written by Sharon Ringer
Updated over a week ago

Salary sacrifice can be used for any non-cash employee benefits. Your employer might offer you a choice of these benefits. You'll benefit the most from the following benefits as these don't attract any tax or national insurance reporting requirements. These benefits include:

  • Childcare vouchers (if enrolled onto a scheme before October 2018)

  • Childcare salary sacrifice (Workplace nursery scheme)

  • Cycle2work schemes

  • Pension salary sacrifice

Although you can sacrifice other benefits, such as technology, holiday scheme or mobile phones, you'll need to pay tax on them (you can keep any national insurance savings!). The way tax is collected by HMRC is either via your payslip each payday usually over the course of 12 months, or in the following tax year by way of a new tax code.

If you aren't sure how your benefits are taxed, you can speak with your HR or Payroll team and they'll let you know.

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