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22nd February 2012

Zeva News

PTR instead of salary sacrifice

As we all know, there are some major changes in October due to AWD. One of the most significant changes for a company such as ours is the incompatibility of salary sacrifice with AWD. If after twelve weeks there is a comparator permanent wage, expenses taken instead of salary will reduce the temps wage in comparison with the permanent worker, even if the temp takes home more money.

Accordingly Zeva is phasing out PAYE+ in favour of a Personal Tax Relief (PTR) model. This changeover will be complete by October, but there are strong reasons why many of Zeva’s customers should swap over now.

Zeva PTR has the following benefits over PAYE+ salary sacrifice:

• Higher levels of expense claims available, so greater savings available,especially for workers at or near NMW
• Greater share of savings rebated to the agency, up to 100%
• Holidays paid as taken, increasing agency cash flow
• Greater savings available to the worker, especially the lower paid
• Zeva PTR is completely compliant with HMRC and NMW regulations
• Zeva is registered with GLA

In addition to the above, Zeva also announce that it has developed an agency employer version of PTR, where the agency can remain the employer. This has several benefits including:

• Savings now available to agencies who were previously unable to ‘outsource’ their workers, and have to remain the employer
• Agencies who previously could not compete with much larger agencies who could afford the high initial costs of setting up their own PTR scheme, can now compete

For further information, please speak to one of our sales team on 0808 168 2772