Salary sacrifice funding optionsFinancial resources for education and training are not available have you considered use of Salary Sacrifice?
Example using basic rate of tax and standard NI contributions for 2013/14
Course fee £2,350.00 plus VAT
- Tax 2,350 x 20% = 470
- NI 2,350 x 12% = 282
- Employers NI 2,350 X 13.8% = 324 (rounded down)
- Employee savings = 752
- Employer savings = 324
Total = 1,076
The tax and NI savings for one person are significant; however if you have a number of people wishing to study Salary Sacrifice could be the way to go! This scenario would assist both the employee and employer.