A guide to tax-efficient benefits

Tax-efficient benefits can save employees money and incentivise them in the absence of pay rises. 

Such benefits can be employer-funded or offered through a salary sacrifice arrangement, which is one of the most common ways staff and employers can save on tax and national insurance.


However, when offering benefits through salary sacrifice, employers must complete a P11D form.

Here are some of the most popular tax-efficient benefits offered through a salary sacrifice arrangement on a voluntary basis, according to Employee Benefits’ Benefits Research, published in May 2013.