Example Savings

Mobile Salary Saver offers significant financial savings for both your employees and your organisation. Your employees save up to 41% on the latest phones, accessories and Vodafone Pay monthly and Pay as you talk price plans when they pay for their mobile from their pre-tax (gross) salary. An employee with a typical Pay monthly package can save between £130 and £172 per year. When they save, your organisation saves up to 12.8% in employer’s National Insurance contributions.

When they buy a phone on the High Street, your employees will pay for it with money that has been subjected to tax and NI deductions. It’s different with Mobile Salary Saver, because as their employer, you deduct the cost of their mobile from their pre-tax salary, before the value of their money is reduced through tax and NI deductions. This means that tax and NI deductions that are made are made on a lower amount.

		High Street	Through Mobile Salary Saver
		Typical 12 month Vodafone store cost	Typical Basic Rate Tax Payer	Typical Higher Rate Tax Payer
	Example Package:	£420.00	£420.00	£420.00
	Talk Deal 500 Email+ Cost: £35 per month Includes; FREE handset 500 minutes 100 texts Unlimited email and web^
	Monthly Salary Sacrifice	N/A	£35.00	£35.00
	Tax Savings per month	N/A	£10.85	£14.35
	Monthly net cost	£35.00	£24.15	£20.65
	Annual cost	£420.00	£289.80	£247.80
	TOTAL ANNUAL SAVINGS	£0.00	£130.20	£172.20

^Fair usage policy of up to 500MB monthly allowance applies
Example includes tax and NI savings at a basic rate of 31% and a higher rate of 41%, effective for April 08 to March 09. Information correct April 2008.