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Partnership and salary sacrifice?

(5 Posts)
JumpJockey Tue 30-Nov-10 09:36:01

If someone works in a partnership, are they able to take part in a salary sacrifice scheme? DH is a GP partner, I'm about to start maternity leave and would like to get a trailer bike for carrying DD1 and new baby around, but because I'll be on ML I'm not able to do the salary sacrifice myself as my pay will be too low. Is this something that's possible within a partnership or do you have to be an employer and employee to be able to take part?

Any advice/experience gratefully received!

riksti Tue 30-Nov-10 10:09:41

partners are not getting salary in the strictest sense but share in the profits. Therefore there is nothing to sacrifice and get tax relief on.

HMRC has details about the salary sacrifice schemes here and as you can see all of them refer to employees.

JumpJockey Tue 30-Nov-10 11:08:52

I guess that makes sense. Oh well, it was worth a try! wink

Lizcat Tue 30-Nov-10 16:06:45

I investigated this thoroughly when I became a partner with my MP even asking a question in parliament. Unfortunately as partners are considered to be self employed we are not entitled to any kind of salary sacrifice.
I assume you are talking about the bike to work scheme which I have enrolled with for my staff, but to qualify they must us the bike to travel top work 50% of the time so if you were using the bike your DH would not qualify.
The only tax efficient thing I have found to do is to use pension to buy new practice premise and then practice pays pension rent.

JumpJockey Tue 30-Nov-10 18:03:33

Thanks for the extra info - that's a good point about sharing the bike as well, hadn't struck me. He'd use it sometimes but not every day. Maybe we'll just have to bite the bullet and cough up the full cost!

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