Salary Sacrifice Calculator Disclaimer

Results are estimates

The salary sacrifice calculator applies published UK tax rates and thresholds to the figures you enter. It uses standard annual PAYE assumptions and assumes a standard tax code.

What it produces is an estimate. It is a useful guide to the general shape of an outcome, and it is deliberately transparent about how it reaches its numbers, but it is not a payslip and it is not a prediction of exactly what your employer will pay you.

Figures shown in examples across this website are illustrative. They are included to show how the mechanics work, not to promise a saving of any particular size.

Tax laws can change

UK tax rates, thresholds and allowances are set by government and can be changed at a Budget or other fiscal event. National Insurance thresholds, student loan repayment thresholds and benefit-in-kind rates are each reviewed on their own timetables, and the Scottish Parliament sets Scottish Income Tax bands separately from the rest of the UK.

There may be a period between an announced change and this website being updated to reflect it. Where a change has been announced but has not yet taken effect, we describe it and date it clearly rather than applying it to the current tax year.

Always check current official guidance before making a decision that depends on a specific rate or threshold.

Individual circumstances vary

Two people sacrificing the same amount from the same salary can end up in different positions. The calculator works from the figures you give it, and there are many things it cannot see.

• Your actual tax code, including any adjustments carried in it
• Other employment, self-employment or investment income
• Other taxable benefits provided by your employer
• Mid-year changes to pay, bonuses or irregular pay periods
• Pension annual allowance limits, including the tapered allowance for higher earners
• Marriage allowance, blind person’s allowance and other personal reliefs

Employer schemes vary

Salary sacrifice is arranged by your employer, and the way a scheme is designed materially affects the outcome. The calculator cannot know how your particular scheme operates.

• Whether pensionable pay is defined using your pre-sacrifice or post-sacrifice salary
• Whether the employer passes on any part of its own National Insurance saving
• Administration charges, provider fees and end-of-scheme costs
• How overtime, pay rises and statutory payments are calculated
• Whether the arrangement is paused during parental leave or other absences
• Minimum and maximum sacrifice amounts, and National Minimum Wage caps applied by the employer

Your employer’s scheme documentation is the authoritative source for all of this.

The calculator is not financial advice

This website provides general information and an estimation tool. It does not provide financial advice, tax advice or personal recommendations, and it does not take account of your circumstances, objectives or financial position.

Nothing here should be read as a suggestion that salary sacrifice is or is not suitable for you. Salary sacrifice suits some people and is a poor choice for others, and the answer depends on facts this website has no way of knowing.

Verify important decisions

If a decision matters, and a change to your pension, your statutory pay entitlements or your borrowing capacity usually does, check it with someone who can see your full position before you commit.

• HMRC The authoritative source for UK tax rates, thresholds, allowances and the rules on salary sacrifice arrangements. Official guidance is published on GOV.UK.
• Your employer or payroll provider The only people who can confirm how your specific scheme works, what your actual deductions will be, and how the arrangement affects pensionable pay, statutory payments and other entitlements.
• A qualified tax or financial professional For personal advice that takes your full circumstances into account, particularly where larger sums, pension allowances or a mortgage application are involved.

You may also find it useful to read how salary sacrifice works and our guide to salary sacrifice tax and National Insurance before speaking to any of them, so you know which questions to ask.

Liability

We take reasonable care over the accuracy of this website, but we accept no liability for any loss arising from reliance on the information or estimates provided here. Full terms are set out in our Terms of Service.