Keep more of your hard-earned cash by taking advantage of a government-backed tax incentive for employees.
Salary sacrifice is a government-backed incentive that helps you and your work save on tax.
You 'swap' a small part of your salary for another benefit, such as pension contributions. Instead of you receiving this small amount in your monthly payslip, the amount goes directly into your workplace pension.
As you're reducing your monthly take-home pay you receive right now, it means you owe less tax and overall get to keep more of what you earn overall.
Here’s an example of Salary sacrifice in action. Rachel works for a small business and earns £50,000 a year.
Before Salary sacrifice:
After Salary sacrifice Rachel keeps more of her earnings:
As a result Rachel keeps hold of £331.25 extra every year!
While salary sacrifice can be a fantastic way to increase earnings, it will have an impact on anything that is linked to your salary. Here are a few things that may affect your decision to switch to salary sacrifice.
Any salary-linked life insurance or loan applications may be affected. Although, this can typically be explained to the lender with a letter and accounted for.
You can't use salary sacrifice where it would reduce your earnings to under the minimum wage.
Typically statutory maternity pay is calculated based on average weekly earnings, so your statutory maternity pay could be reduced if your overall salary is reduced.
Simply enter a few details about you and how much you'd like to contribute via salary sacrifice, and we'll sort the res.
If your work doesn't offer salary sacrifice at the moment, we can easily set it up with them for you.
Drop us an email firstname.lastname@example.org here and we'll reach out to your work.