To cut a longish story short - do payments on existing salary sacrifice schemes (eg Cyclescheme) go down if you move up a tax bracket, and vice versa if you move down?
Slightly ambiguous post..
But no, your payment (sacrifice) to your employer doesn't change, it is still 1/12 of the voucher cost.
What does change is the impact on your pocket, which I guess goes down.
Say you earned 49,999 when you got your voucher for £3k then you'd be paying your employer £250 pcm which would mean £185 out of your pay cheque.
If your salary goes up to £56k after 6 months then you'd only lose £150 from your pocket for each of the next 6 months.
And I think you'd also payless tax on £1.5k since your effective salary would be £50k average through the year. Double win:-)
Have I got that right?
Shouldn't change surely? The amount you save goes up as you're paying less tax as the same repayment comes out of the bit of gross salary you pay the higher tax on, before the tax is taken.
effectively yes. the same amount pre-tax is taken out, which is a smaller number post-tax
that said, if you pay a final payment as "tax on 25% of the value" - that number will go up
As has been said, as the payment is from gross income a higher rate tax payer will see a lower amount disappear from their net income.
Do you also save on NI contributions?
A nice way to avoid paying some higher rate tax. See also any other gross salary sacrifice scheme.