NHS salary sacrifice... is it worth it?

drumlegend

drumlegend

drumlegend

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So I'm 25, a long way off retiring and I want to know what everyone thinks of the salary sacrafice scheme. I can get a PS4 1TB with Drakes Fortune for £28 a month for 12 months. So it works out cheaper than buying it cash on Amazon.

Just wondering what everyone's opinion on this was.
 
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The question you need to ask is "can I enjoy a PS4 when I'm dead?"

Edit - for the avoidance of doubt, OP, this was said in jest.
 
JOSH86 said:
Hold what has the NHS got to do with a new PS4?

I'm missing something clearly, someone fill in the blanks?
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Salary sacrifice. They take money out of your payslip and offer tax relief.

It's a technology scheme that is running at the moment which allows staff to buy TVs, consoles, laptops and even the Apple Watch. You don't pay the full cost from what my understanding is.

Not sure it's worth £28 a month for a PS4 though :/
 
JOSH86 said:
Hold what has the NHS got to do with a new PS4?

I'm missing something clearly, someone fill in the blanks?
Click to expand...

they dont..but a lot of comapnies offer this

you pay at source, so your actual gross wages are less before tax and NI..so the company paying your salary has lower contributions

we have child care stuff that you can take off your gross as well as annual travel passes for public transport..same with my wifes employers, who also offer share schemes before taxable pay

the company makes no money from the goods , but makes a saving in contributions
 
EVH said:
Salary sacrifice. They take money out of your payslip and offer tax relief.

It's a technology scheme that is running at the moment which allows staff to buy TVs, consoles, laptops and even the Apple Watch. You don't pay the full cost from what my understanding is.

Not sure it's worth £28 a month for a PS4 though :/
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Ahhh ok with you. We have a Salary Sacrifice but for a bicycle.

Ditto not sure it's worth it for a PS4, surely you can just save up for it?

Pretty decent of the NHS tbh.
 
In the past we have bought a laptop and also our Samsung LED TV.

Do the sums and work out if it is cheaper and go for it.
 
Providing its not got extra payments or fees on it (like a lot of cycle schemes do now) it will be cheaper than buying it outright.

Spending your NHS wage on toys does ban you from being able to complain your not paid enough though ;)
 
How do they justify this?

I mean I can understand the relevance when it is a season ticket loan or a bike for getting to work... but why is a PS4 allowed - if you can get a PS4 then what is to stop some employer setting up a scheme for employees to put all their spending on electronics through such a scheme?
 
GinG said:
In the past we have bought a laptop and also our Samsung LED TV.

Do the sums and work out if it is cheaper and go for it.
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Why wouldn't it be cheaper, you're buying something pre-tax? Or, being the NHS, have they got some specific supplier you have to go through?
 
dowie said:
Why wouldn't it be cheaper, you're buying something pre-tax? Or, being the NHS, have they got some specific supplier you have to go through?
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I'm assuming because it's being paid for monthly rather than all at once there may be interest/credit fees added on top.
 
dowie said:
How do they justify this?

I mean I can understand the relevance when it is a season ticket loan or a bike for getting to work... but why is a PS4 allowed - if you can get a PS4 then what is to stop some employer setting up a scheme for employees to put all their spending on electronics through such a scheme?
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Nothing. My sister can buy Curry's vouchers through a salary sacrifice scheme.
 
alx said:
I'm assuming because it's being paid for monthly rather than all at once there may be interest/credit fees added on top.
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well that would be a naff scheme if the interest exceeded the tax savings

though if you can get a PS4 tax free then there is something rather wrong with the salary sacrifice scheme
 
Skeeter said:
Nothing. My sister can buy Curry's vouchers through a salary sacrifice scheme.
Click to expand...

can anyone who works in tax explain this?

I understand that stuff like bikes, child care vouchers, season tickets can be bought pre-tax in this way... I've never heard of consumer electronics being allowed?
 
dowie said:
well that would be a naff scheme if the interest exceeded the tax savings

though if you can get a PS4 tax free then there is something rather wrong with the salary sacrifice scheme
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Yep, but it would still be cheaper than paying for it on credit from your post tax income.
 
depends how you do it - but regardless that would be a naff benefit - the employer ought to be extending the credit themselves or at least getting it for a rather low rate, for example season ticket loans have always been interest free at places I've worked

still I'm not seeing how consumer electronics would be justified - would be very interested if someone who knows how these schemes work could provide an explanation
 
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