Salary Sacrifice Calculator

Tax Year End salary sacrifice notice (warning)

This message is to give customers information on maintenance for AP3.

Message content: Please note the salary sacrifice calculator has not yet been updated with the Scottish 2024/25 tax rates but we are working to have this available soon.
Message type: warning

This calculator can be used to produce individual quotes to help financial advisers and employers calculate the benefits that can be achieved through an agreed salary sacrifice between an employer and employee. Salary sacrifice isn’t suitable for all employees especially those who earn at or around the personal tax allowance. The information required to generate a quote will not be used for any purpose other than to illustrate the effect a salary sacrifice will have on an employee. You must have consent from an employee to use their information in the calculator and have a legal reason for processing the information used.

If you are looking to produce calculations for more than one employee, please refer to our Bulk Salary Sacrifice Calculator. Please note the layout and format of the bulk calculator is different to that used for the individual calculator.

Complete the relevant fields with employee details

Employee full name optional

Employee NI status

This is a required field.

Employer name optional

Yearly gross salary

This is a required field.

Employee yearly pension contribution

This is a required field.

Convert tax and NI savings

This is a required field.

Employee contribution method

This is a required field.

Employer yearly pension contribution

This is a required field.

Convert employer savings

This is a required field.

Personal tax allowance

This is a required field.

Tax regime Choose the employee's country of residence.

This is a required field.

Please fix the errors and resubmit.

Summary

Notes :

Notes

This information is based on our understanding of current legislation, taxation law and HM Revenue & Customs (HMRC) practice, which may change.
If an employee has any questions about salary sacrifice, they should speak to their employer, local Department for Work and Pensions (DWP) office, or financial adviser. It's also possible to find out more at www.gov.uk/personal-tax.
Salary sacrifice isn't suitable for everyone and employees should think about:
- the impact of any benefits provided by their employer that are linked to salary (for example, death benefits or overtime) although it's possible for an employer to use a 'notional' or pre-sacrifice salary for these benefits.
- mortgage lending that may be linked to actual salary received.
- statutory benefits that may be affected by a reduction in salary – for example, the state pension, working tax credit, statutory sick pay, incapacity benefit and statutory maternity, paternity and adoption pay.
A salary sacrifice can't reduce an employee's salary below the National Minimum or Living Wage rates.
If an employer keeps some or all of the NI saving they'll have to pay corporation tax. Their local Inspector of Taxes will decide whether or not to grant corporation tax relief on employer contributions. We haven't shown this in the illustration.
Calculations are based on the rates and thresholds applicable for the tax year in which this illustration is produced.
The value of an investment can fall as well as rise and isn't guaranteed. You may get back less than you originally invested.
The net annual contribution shown takes account of basic rate tax relief only where contributions are made net from net pay. Intermediate rate (Scottish taxpayers only), higher rate tax and additional rate tax are taken into account in the calculations however the amount of intermediate rate (Scottish taxpayers only), higher rate and additional rate tax relief actually available will depend on individual circumstances.
Aegon accepts no responsibility for any loss as a result of relying on the figures in the calculations shown.