What are tech schemes?
Tech schemes are a salary-sacrifice arrangement that helps your employees to purchase technology and selected homeware through gross-pay deductions (typically over 12 months) whilst creating National Insurance (NI) savings for both the employee and the employer.
Post‑2017 Optional Remuneration rules removed most income‑tax relief, so the hard saving is NI only. Nonetheless, tech schemes remain one of the highest‑rated voluntary benefits among UK workforces.
How do a tech schemes typically work?
- Contract variation – employee signs a salary‑sacrifice agreement (must not breach National Minimum Wage).
- Employer purchase – company acquires the chosen item or issues a retailer voucher.
- Gross‑pay deduction – the cost is repaid in equal instalments; each deduction attracts NI relief.
- Benefit‑in‑kind reporting – the sacrificed salary is taxable and must be pay‑rolled or reported on a P11D.
What’s the strategic value tech schemes?
Objective |
Contribution of a tech scheme |
|
Talent retention & EVP |
Surveys show modern workers list a tech scheme among their top three desired perks. |
|
Cost efficiency |
Employer NIC drops by 13.8 % on every order—often offsetting platform fees. |
|
Productivity |
A tech scheme accelerates at‑home hardware upgrades without inflating capital budgets. |
|
Financial wellbeing |
Interest‑free, payroll‑deducted instalments beat high‑APR BNPL offers |
|
Low administrative overhead |
Are there any governance checkpoints to consider?
- National Minimum Wage safeguard – use net‑pay deductions for lower earners if required.
- Leaver recovery policy – stipulate net‑off from final pay or invoicing for any outstanding balance.
- Scheme cap – £ 1,000–£ 3,000 per employee, per year is the market norm.
- Compliant messaging – promote “up to 8 % NI saving” (higher figures pre‑date 2017).
The 2025 leaderboard – UK tech scheme providers
|
Rank |
Provider |
Retail partners |
Standard term |
Key differentiator |
|
1 |
Currys & IKEA; 1,000s of SKUs |
12 months |
Zero employer set‑up cost; employee NI saving up to 8 %. |
|
|
2 |
Currys & John Lewis |
12–18 months |
Offers either salary‑sacrifice or net‑pay deduction for NMW protection. |
|
|
3 |
Broad gadget range online |
12 months |
Interest‑free payments and no credit checks. |
Zhoosh’s best‑practice for rollout
- Pilot first – test payroll and P11D data flows with a small employee cohort.
- Timed enrolment windows – September and November align with major retail peaks.
- Automate compliance – insist your vendor delivers ready‑to‑upload payroll files.
- Targeted communications – illustrate real‑world savings (e.g., “MacBook Air: RRP £1,099 → £1,011 through the tech scheme”).
- Plan for exits – recovery terms must be explicitly stated in the salary-sacrifice agreement.
Final take‑away
Well‑designed tech schemes deliver tangible NI savings, strengthen your employee value proposition, and equip staff with up‑to‑date technology without derailing budgets.
If you would like to speak with a Zhoosh benefits adviser about adding a tech scheme to your benefits package, please get in touch.
