UK Salary Sacrifice Calculator 2024/25
Calculate your Income Tax and National Insurance savings from salary sacrifice. Pension contributions, Cycle to Work, and childcare vouchers — see your real net cost.
Your Sacrifice Details
Savings Summary
Detailed Breakdown
Come utilizzare UK Salary Sacrifice Calculator
Enter your gross annual salary
Use your gross annual salary before any deductions. This is the starting point for calculating your income tax and National Insurance bands.
Enter the sacrifice amount
The annual amount you want to sacrifice (give up as salary in exchange for a benefit). For pensions, this is the annual contribution. For cycles, typically the bike cost.
Understand the savings
You save Income Tax and Employee NI on the sacrificed amount. Your employer saves Employer NI — some employers share this saving with you.
Check minimum wage rules
Your post-sacrifice salary must not fall below the National Living Wage (£11.44/hour in 2024/25). This limits how much low earners can sacrifice.
Suggerimenti
- For a basic rate taxpayer sacrificing £3,000 into a pension, the actual cost is around £2,040 after tax and NI savings — a 32% discount.
- Higher rate taxpayers save even more: sacrificing £3,000 saves approximately £42 in NI plus £1,200 in income tax = £1,242 total saving.
- Ask your employer if they pass on their Employer NI saving (13.8%) — many will add it to your pension pot.
- The Cycle to Work scheme typically has a £1,000-£1,500 limit, but some employers offer more. The bike must be used primarily for commuting.
Domande frequenti
What is salary sacrifice?
Salary sacrifice (also called salary exchange) is when you agree to give up part of your salary in exchange for a non-cash benefit (pension, cycle, childcare). Because you earn less, you pay less Income Tax and National Insurance.
Is salary sacrifice always worth it?
Usually yes for pensions — especially for higher-rate taxpayers who save 40%+. However, a lower salary can affect benefits that are salary-dependent: mortgage applications, Universal Credit, statutory sick/maternity pay. Check each before sacrificing.
How much can I sacrifice into my pension?
The annual pension allowance is £60,000 (2024/25) or 100% of your earnings, whichever is lower. However, if you've accessed your pension flexibly, the MPAA (£10,000) applies.
Does my employer have to pass on their NI savings?
No, employers are not legally required to share their NI savings. However, many good employers do pass on some or all of the ~13.8% employer NI saving, effectively boosting your pension further.