Fancy getting your hands on a top-of-the-range phone at a discounted price? And not having to pay for it up-front, but having the cost taken at regular intervals direct from your salary (and in the process reducing the National Insurance you pay on your wage)? You probably want to encourage your employer to sign up to the newly launched PhoneScheme then – created by Bath-based Grass Roots.
Employers win too as they can offer their employees between 22% and 42% discount on the latest handsets by taking advantage of the scheme. And with a saving of up to 13.8% in National Insurance contributions on the cost of each phone, businesses not only expand staff benefits at no extra cost, but actually save money by taking part.
“PhoneScheme offers businesses the opportunity to expand their benefits offering to their employees at no extra charge”
The scheme comes from the team behind CycleScheme, the UK’s leading Cycle to Work provider. Cyclescheme has helped over 40,000 companies, including Santander and Sainsbury’s, to save their employees money on new bikes.
Alongside the launch, Grass Roots carried out research on gadgets as a form of attracting and retaining staff. They found that over 80% of employers believe that it’s important to give staff access to gadgets to enable them to perform their job.
They also found that over 70% of employees claimed that a low total cost of smartphone ownership is more important than free minutes or data, phone specification, or network provider customer service. However, customers of PhoneScheme can choose their SIM card and network provider.
How does it work?
Employers pay for the phones upfront, then this cost is recovered from employees’ gross salaries over 12 months. Due to this reduction in salary, the National Insurance contribution by the employer is reduced.
“Employees appreciate having the opportunity to access high-value items, tax-free and then spread the cost of paying for them”
Stephen Holt, Commercial Director of Grass Roots Employee Solutions, said: “A generous employee benefits package can be an excellent way to motivate staff, however, businesses are often limited in what they can offer staff due to the high costs associated with some benefits packages.
“PhoneScheme offers businesses the opportunity to expand their benefits offering to their employees at no extra charge. The success of Cyclescheme has shown us that employees appreciate having the opportunity to access high-value items, tax-free and then spread the cost of paying for them.”
In addition to PhoneScheme, Grass Roots Employee Solutions also allows employers to offer other technology benefits free of charge through Computingscheme for technology equipment.
For more information on the Grass Roots PhoneScheme, visit the PhoneScheme website, or follow them on Twitter here: @PhoneschemeUK
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Shona Wright
Shona covers all things editorial at TechSPARK. She publishes news articles, interviews and features about our fantastic tech and digital ecosystem, working with startups and scaleups to spread the word about the cool things they're up to.
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