Salary Sacrifice Solutions

What is Salary Sacrifice?

Salary Sacrifice can be used for benefits such as childcare, bikes for work and mobile phones, but the greatest potential saving can be made in connection with pension contributions.  It involves employees agreeing to take a lower salary in return for a pension contribution. Because the salary is lower, NIC’s payable by both employer and employee are reduced and both parties can also put some, or all, of what they have saved in NIC’s towards making additional pension contributions.

What are the benefits?

Salary Sacrifice allows the higher rate taxpayer to immediately increase the value of each personal contribution by 14.7%. This could be viewed as obtaining an immediate investment return of 14.7% on each and every contribution, a level of return that would be viewed as extremely high when compared with investment returns available over recent years.  For basic rate taxpayers the increase to the value of each contribution is even greater at 31.3%.  This factor combined with the importance of fund choice form the two key aspects of our proposition to our clients.

Why Portus?

Portus has in-depth knowledge and experience in dealing with Salary Sacrifice and are able to provide all communication and assistance in respect of the implementation.

We strongly advise consideration of the benefits offered by Salary Sacrifice, and we are finding that it is often now being used when a salary increase is planned or a bonus is payable and there is an existing company scheme to which employees are contributing.

Salary Sacrifice funding Flexible Benefits

For those who are considering implementing Flexible Benefits, Salary Sacrifice arrangements can be used to fund implementation design and ongoing costs of a Flexible Benefits programme. If you would like to arrange a FREE  one hours consultation to find out how to self-fund Flexible Benefits through Salary Sacrifice please click here

To arrange a FREE one hours consultation regarding Salary Sacrifice please click here or call Sue Gregory on 01926 331396