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Example Savings

When you buy a phone on the High Street you are paying for it with money that has been subjected to tax and National Insurance (NI) deductions. It’s different with Mobile Salary Saver because your employer deducts the cost of the mobile from your ‘pre-tax gross’ salary, before the value of your money is reduced through tax and NI deductions. This means that your tax and NI deductions are, therefore, made on a lesser amount, so you retain more money in your pay packet.


  High Street Through Mobile Salary Saver
   Typical 12-month
 Vodafone store cost
 Typical Basic Rate
 Tax Payer
 Typical Higher Rate
 Tax Payer

 Example Package:
 Talk Deal 500 Email+
 Cost: £35 per month
 Includes :
  • FREE handset
  • 500 minutes
  • 100 texts
  • Unlimited email and web^

 £420.00

 £420.00

 £420.00
 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.

Learn more about Mobile Salary Saver.
Click to see an example payslip (opens PDF in new window)