What is Salary Sacrifice?

Salary sacrifice is a tax efficient way of an employer providing a benefit and an employee receiving it. The essence of Salary Sacrifice is that a set amount of annual salary is forfeited in return for a benefit from the employer, and in so doing "saving" the Income Tax and National Insurance that would otherwise be paid on the income.

The VMC Metro Cashless System and Salary Sacrifice

The VMC Metro system is an ideal tool to administer Salary Sacrifice schemes as it gives out the entitlement to benefits in a controlled way, and can ensure that non-eligible purchases are automatically excluded from the scheme (eg by barring purchases of ineligible products by the Salary Sacrifice purse) thus avoiding potentially expensive and aggravating claims for back tax on the employee and employer.

For a more detailed explanation please request a copy of the VMC Salary Sacrifice guidance note: