A salary sacrifice scheme is an agreement between an employee and employer where the employee agrees to forego a portion of their salary in exchange for receiving non-cash benefits, such as a company car or additional contributions to a pension plan. These non-cash benefits are typically exempt from income tax and national insurance contributions, which can result in significant savings for both the employee and employer. These schemes can be beneficial for both parties as it may help the employee save for retirement, or get a company car, while also helping the employer save on taxes.
