What benefits will be included in My Barratt Benefits?
Current flexible benefits include:
- Buying/selling holiday
- Cancer checks
- Payroll Giving
- Dental Plan
- Gym membership
- Cycle to Work schemes – Halfords & Cyclescheme
- Healthcare cash plan
- My Barratt Staff Shop retail discounts and lifestyle benefits
Do I need the approval of my line manager to select any benefits?
Buying/selling holiday requires approval from your line manager. If you choose to buy or sell holiday you should complete a form available here. Unfortunately, because holiday arrangements for weekly paid employees are governed by the Working Rule Agreement it is not possible for weekly paid employees to buy or sell holiday.
How long will each benefit last?
For some choices there will be a minimum 12 month contract period, for others it may be shorter. Please see individual choices and scheme details or contact each provider for clarity.
Can I take up new benefits during the course of the year?
Benefits can be taken up at any point in the year, except Buy/Sell Holidays which has a window from December – March annually.
All new starters get the opportunity to buy/sell pro rata amount of holidays.
Can I change my benefits during the course of the year?
Some benefits can be altered at any time, however if they require a contractual agreement (i.e. Gymflex) then they can only be altered if you have a change in your personal circumstances known as a “lifestyle event” (for example marriage or the birth/death of a dependent).
When will My Barratt Benefits be effective?
Once you have submitted your request(s), the Group Payroll team will be notified and a confirmation statement letter will be sent out to you. Once this letter is signed and returned then your benefits will be added on by Group Payroll and will take place on the next available payroll date.
What happens if I don’t choose any of the benefits on offer?
Don’t worry, if you don’t make any choices you will still retain your existing contractual benefits.
What is salary sacrifice?
Salary sacrifice is a financially efficient way of structuring pay and benefits, allowing you and the company to save money. Under salary sacrifice your pay is reduced and Barratt then provides you with a benefit of equal value.
What benefits operate under salary sacrifice?
- Buying holiday
- Gym membership
- Cycle to Work
- Healthcare cash plan
- Dental Plan
- Cancer Checks
Is salary sacrifice a contractual change?
Yes. Once your benefit choices under My Barratt Benefits have been approved the changes will form a variation in your employment contract for 12 months. Details of this will be provided to you in writing.
What are the advantages of salary sacrifice?
Salary sacrifice may mean you pay less Tax and / or National Insurance. The company also saves National Insurance contributions.
- NI savings are made on Gym Membership, Healthcare Cashplan, Dental Plan and Cancer Checks.
- Tax and NI savings are made on Buying Holiday and the Cycleschemes.
What does it mean for the amount of income tax and National Insurance contributions I pay? Income Tax
For buying holiday and the Cycle to Work scheme, if you are a basic rate tax payer you will save income tax at the rate of 20% on any pay sacrificed. If you are a higher rate tax payer you will save 40% (for additional rate payers the saving is 45%).
If you earn more than the Primary Threshold you will save National Insurance contributions on the value of any pay sacrificed for benefits (including pension contributions). The amount you save depends on the level of your pay.
Are there any situations when salary sacrifice is not suitable?
Salary sacrifice is attractive for most employees because it increases their take home pay.You are not allowed to exchange pay to a level that would put you below the National Minimum Wage (as at April 2018 this is currently £14,250.60 a year for a 35 hour week if you are over 25 years old – if you work part time the amount is pro-rated).
If participating in salary sacrifice would reduce your pay below the Lower Earnings Limit (as at April 2018 this is currently £6,032 a year) you would give up valuable State benefits which may not be in your best interests. Anyone with earnings close to the limits will not be invited to participate.
Should I participate if I am over State Pension Age and don’t pay National Insurance?
If you are over State Pension Age it will make no difference to you whether or not you participate in salary sacrifice. You will not make a saving in National Insurance as you don’t make any payments. The Company still pays National Insurance and will be able to make a saving if you continue to participate in salary sacrifice.
What happens to the savings the Company makes from salary sacrifice?
The Company’s savings will be re-invested into employee benefits
Will it affect the amount I can borrow?
When applying to borrow money from a financial institution such as a mortgage company, you will often be asked for your salary. To ensure the maximum amount you can borrow is not reduced you should tell them your notional salary (your salary before it is reduced). The lender should then take this salary into account when working out if you can afford the loan.
Will it affect any benefits I receive from Barratt?
The benefits you receive from Barratt are not affected, and we will make sure of this by using your notional salary for salary-related benefits. Although your salary is reduced by the amount you sacrifice for other benefits, all your benefits (for example death in service lump sum benefit) will be based on your salary before it is reduced – we call this “notional salary”. Salary review and bonuses will also be based on notional salary.
Will it affect Statutory Maternity/Paternity/Adoption/Shared Parental Pay or Statutory Redundancy Pay?Statutory Family Friendly Pay is based on your actual earnings and payments can sometimes be reduced under salary sacrifice. For example, SMP is based on 90% of your gross weekly earnings for the first six weeks then it is paid at a flat amount per week for most employees. Participating in salary sacrifice benefits reduces your gross pay and will therefore reduce the amount of SMP you receive for the first six weeks of maternity leave.
Statutory Redundancy Pay (SRP) is calculated using your basic salary. A maximum amount is taken into account when calculating SRP. Therefore participation in salary sacrifice benefits would reduce SRP if your pay after salary sacrifice is less than the maximum amount. Further information can be obtained from www.direct.gov.uk
Will it affect Working Tax Credit or Child Tax Credit?
Other means tested benefits such as Working Tax Credit and Child Tax Credit could increase by participating in salary sacrifice. Rules for claiming benefits are based on wider personal circumstances than just salary. For further information on tax credits contact the HM Revenue and Customs helpline on For up to date figures please go online to www.direct.gov.uk / 0845 300 3900.
Will it affect Student Loans or any other payments?
Any employees with outstanding Student Loans should not be adversely affected by participating in salary sacrifice. The Student Loans Company usually measures your ability to make repayments based on your P60 earnings. As this figure would not increase due to salary sacrifice you should not be adversely affected. If you need further information on this matter you may wish to contact the Student Loans Company Limited on 0870 240 6298.
If you have a County Court Judgement (‘CCJ’) or anything similar, changes are not usually made to these as a result of salary sacrifice. However, where the Order is explicit about the definition of pay to be used, then the impact of salary sacrifice should be notified to those parties to the Order. You should seek legal advice if you are unsure on this matter.
For information regarding Salary Sacrifice on Pension Contributions please click here.
Where can I get answers to queries/further information?If you have any queries about individual benefits you should contact the benefit provider. General queries should be directed to your line manager or emailed to GroupHR@barrattplc.co.uk