Although the main rate of employee national insurance contributions (NICs) has been reduced by 2% to 10% from 6 January 2024, 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. There has been no corresponding reduction to the rate of employer NICs.