A lot of companies have started to offer salary sacrifice schemes. Before you sign up to this you have to understand what a salary sacrifice scheme is and what you are actually getting for your money. Once you understand this you can determine whether or not the salary sacrifice scheme is right for you.

What is a Salary Sacrifice Scheme

The first thing you need to know is what a salary sacrifice scheme actually is. These schemes are benefit schemes offered by employers where you offer up part of your salary to receive a non-cash benefit. The non-cash benefit varies depending on what your company feels will be for their employees. There are a number of benefits to salary sacrifice schemes that you should consider.

The Benefits of Salary Sacrifice Schemes

The primary benefits of salary sacrifice schemes are that the non-cash benefit you receive will be exempt from tax and national insurance. This can decrease the payments that you have to make each month which is a benefit that everyone will enjoy. Another benefit that you find with the salary sacrifice schemes is that you will be paying less for the non-cash benefit then you would if you did not have the scheme.

Car Parking Salary Sacrifice Schemes

One of the most common salary sacrifice schemes is a car parking salary sacrifice scheme. This scheme offers you parking spaces at work or in the vicinity of your office at a fraction of the price that you would normally pay. Some of these schemes will offer people priority parking in a lot which would otherwise be unavailable to you.

When you look at this particular scheme you have to find out what you are getting for your money. Getting a parking space in an area that is not convenient will not be worth the sacrifice of your salary. You also need to research the area that you are getting a space in. If the space is generally paid for then you should find out how much it would cost outside of the scheme. There are times when the cost of parking is cheaper when not taken with the scheme. However, these instances are usually very rare because most companies ensure that the salary sacrifice scheme offers good value.

Other Salary Sacrifice Schemes

Some of the other common salary sacrifice schemes include healthcare and dental care. When you have these schemes you give up some of your salary to get discounted healthcare and dental visits. However, these schemes are generally limited to what they cover in terms of doctor and dentist visits. It is important that you understand what the scheme covers because this will impact the value of the scheme to you.

There are a lot of companies that offer salary sacrifice schemes. One of the common schemes is the car parking salary sacrifice scheme where you get parking at your office for a fraction of the price. However, before you opt into this scheme you have to get all the information about it.