Can my employer offer BUPA healthcare as a salary sacrifice scheme?

[lillythepink]

Hi All

Can anyone advise me if my employer offer BUPA healthcare as a salary sacrifice scheme so that the deduction from my pay is from the gross rather than net salary?

Many thanks

Lilly

[buildersmate]

I don't see how because it is a taxable perk.
If you agreed to reduce your gross salary by X so your employer could pay X to buy you healthcare, the employer would have to declare the payment on the P11D to HMRC. This would then result on the employer then having to pay employee's NI, employer's NI and your tax on the payment.
The net impact would be zilch.
A good try.

[factor-fiction]

I understand it won't affect tax liability bu tcan lead to savings in National insurance.
Look on the HMRC site

[factor-fiction]

I agree with BM that there is no tax benefit but I understand that employees can save NI.
There's an article (advert) here:
http://www.aspira-ifa...ice-save-tax-and-nics


It says:
"Other non-cash benefits may save on employee national insurance contributions but will still be subject to income tax and employer's national insurance (Class 1A) contributions through the P11D reporting process. Private medical insurance premiums are a good example. These can be paid by the employer and recovered through salary sacrifice. However, a P11D must be completed for the employee and the cost of the benefits would then be taxed. The employee would save on their national insurance contributions, albeit only at the rate of 1% for higher rate taxpayers. "

It's a complex area, and employers need to follow strict rules, and for a higher rate taxpayer the NI saving is only at 1%.