What is the salary sacrifice scheme?

Under HM Revenue and Customs (HMRC) regulations, an employer is able to provide non-cash benefits and in return employees sacrifice part of their salary to help save you money:

The agreed amount (the sacrifice) for the benefit/s is reduced from your gross salary before tax and national insurance contributions (NIC) are calculated.
You then pay lower levels of tax and NIC on your remaining salary and make savings in this way.
In joining the scheme, you agree to amend the pay element of your terms and conditions to reflect the reduction for receipt benefit/s.  This amendment is only the period of time you wish to receive the benefit/s.
How salary sacrifice works:

Tax and NIC deductions are calculated on your reduced salary.  This means the amount of tax and NIC due is lower than the amount you would have been paying before signing up for Advantage and you will therefore make savings.
The requirement is that you sign up to the Advantage scheme for a minimum of 1 year, thereby having 12 equal monthly reductions (3 years for car lease scheme) from your salary to the value of the benefit received.
Payroll will automatically reduce your salary each month.  You will notice that the benefits you have chosen will be set out on the left hand side of your payslip (the full amount of the benefit will be shown).

Childcare

Childcare vouchers are a tax and NIC efficient method of paying for childcare and can be claimed by each working parent/guardian. A typical basic rate taxpayer can expect to save around £900 per annum when choosing vouchers worth £243 a month. Furthermore, the Trust will pay the administration charge for this service on your behalf.