Although the main rate of employee national insurance contributions (NICs) is just 8%, fringe benefits still have a definite tax advantage when compared to conventional salary. Even if there is not much, if anything, in the way of income tax saving, directors and employees can avoid NICs. Certain tax-advantaged fringe benefits will also mean no, or little, NICs for the employer, with these types of benefit particularly suited to a salary sacrifice arrangement. Such arrangements are now more beneficial than ever with the rates of NICs payable by employers having increased to 15%.