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