Salary Sacrifice Calculator (UK)
This calculator helps you to understand the impact of salary sacrifice on your take-home pay and pension contributions. It is designed for UK residents considering salary sacrifice schemes.
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Data Source and Methodology
All calculations are based on UK government tax rates and pension contribution formulas. For more information, visit the UK Government Income Tax Rates.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
Net Salary = Annual Salary - (Tax + NI) - Salary Sacrifice
Glossary of Terms
- Annual Salary: Your total yearly income before any deductions.
- Salary Sacrifice Amount: The portion of your salary you choose to sacrifice.
- Net Annual Salary: Your income after all deductions, including taxes and salary sacrifice.
- Pension Contribution: The amount contributed to your pension from the salary sacrifice.
Frequently Asked Questions (FAQ)
What is salary sacrifice?
Salary sacrifice is an agreement to reduce an employee's cash pay in return for a non-cash benefit, such as increased pension contributions.
How does it affect my tax?
Salary sacrifice can reduce your taxable income, potentially lowering your tax liability.
Can I change the sacrifice amount?
Yes, many employers allow you to adjust your salary sacrifice amount during specific periods.
Is there a limit to how much I can sacrifice?
Yes, there are limits based on your earnings and pension scheme rules. Always check with your employer.
Will it affect my state pension?
No, your state pension is calculated on your National Insurance contributions, which are not affected by salary sacrifice.