Employee Health Investment
This calculation is based on an individual earning £30,000 a year during tax year 2017- 18. Payment period is set at 12 months.
Monthly take-home pay after tax and NI: £1,973.46
Cost of Health Screen: £200 plus VAT of £40 so total price is £240. Employer purchases Health Screen and reclaims the VAT
The VAT saving is passed to the employee, so the employee is investing only £200. Employee salary is reduced to £29,800 for 12 months
Monthly take-home pay after tax and NI on £29,800 is £1,962.12
The difference in monthly take-home pay is £11.34
Total price paid in a year for the Health Screen is £136.08. A saving of £63.92 to the employee
Business Health Investment
Example of Company NI savings based on an employee salary of £30,000 and NI contributions set at 13.8%.
The NI contribution at 13.8% on a salary of £30,000 is £4140
Using the above example of a £200 Health Screen, the reduced taxable salary is £29800
NI contribution at 13.8% on a salary of 29800 is £4112.40, saving the company £27.60 in NI contributions
If a company has 100 employees opting for the Health Screen investment plan, then this will save the company £2,760 in NI contributions