6 Technology Benefit Myths
Myths busted – Technology and Smartphone Benefits are relevant as ever. Here are some of the common misconceptions tackled head on...
First of all, how do technology benefits work? Well, employees agree to sacrifice or ‘exchange’ some of their pre-tax salary in return for the Home Technology package of their choice, and make savings in National Insurance on the total amount sacrificed. So, in short, it's an efficient way of providing employees and their families with the latest, desirable computing and technology products for use in their home. Now, let's look at some common misconceptions surrounding Salary Sacrifice on technology.
Myth 1 - ‘Salary sacrifice is no longer available for technology’
Untrue. Salary sacrifice schemes for Technology and Smartphones have always been available and our schemes have been in operation since 2000. The latest tax change in April 2017 means a different tax treatment and a simpler process for employers to implement.
Myth 2 - ‘Savings aren’t available any more’
Untrue. Employees still make savings in National Insurance (and pension contribution where applicable) and there are no end of scheme payments. Employers can build in an administration rebate and some organisations also make pension contribution savings too.
Myth 3 - ‘It’s too risky, staff may leave without paying for their equipment’
Untrue. We run 100s of schemes every year for a wide range of organisations – the largest having 140,000 staff. The incidence of non-payment is so small compared to the huge benefits these schemes deliver that no client has ever stopped running a scheme due to risk. We can also offer an insurance solution to mitigate against nonpayment if required.
Myth 4 - ‘The schemes are time consuming and difficult to administer’
Untrue. Following the tax changes in 2017 the schemes are easier than ever to administer, with a ‘once only’ P11d entry and simplified payroll administration. We provide a fully managed service at no cost to ensure your time is spent on your day job, not running our scheme.
Myth 5 - ‘Everyone has a computer now so there’s no demand’
Untrue. Our schemes are as popular as ever with excellent take-up rates for an ever-widening array of products. The rate of evolution and advances in technology products like PCs, tablets and smartphones means that employees always have demand for the latest, improved equipment for themselves or their family.
Myth 6 - ‘These schemes encourage staff to get into debt’
Untrue. There are strict limits on what employees can spend, and staff are generally cautious regarding how much salary reduction to commit to. Also, by providing a safe, low-cost method of paying for equipment, you are protecting staff, especially the lower paid, from having to use high interest credit or ‘payday’ loans.
Let’s Connect specialise in the implementation, management and delivery of technology employee benefit schemes. Their scheme offers employees the opportunity to access brand new technology from leading manufacturers, saving in National Insurance and spreading the cost, purchased through a convenient and affordable salary sacrifice arrangement. Employees choose from a wide range of technology including the latest iPad, tablets, computers, Smart TVs, mobile phones, games consoles, digital audio, fitness wearables and much more – all ordered through a convenient online portal and delivered direct to their homes.
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