What can I sacrifice my salary for?

Common UK schemes: pension contributions, cycle-to-work (bikes + accessories), EV car lease, childcare vouchers (legacy - closed to new joiners), holiday buy, technology schemes, gym memberships. All reduce your gross salary pre-tax.

How much tax do I save?

The sacrifice is deducted before Income Tax and National Insurance, so you save both. Basic-rate: 28% (20% IT + 8% NI). Higher-rate above UEL: 42% (40% IT + 2% NI). Additional rate: 47% (45% IT + 2% NI).

Are there any downsides?

Lower gross salary means: lower mortgage borrowing capacity, lower pension auto-enrolment base (if not on salary sacrifice), reduced maternity/redundancy pay, and lower state pension credits if you drop below the Lower Earnings Limit (£6,396).

Is salary sacrifice always allowed?

No - your employer must offer the scheme and HMRC must approve the benefit type. Your reduced salary cannot fall below the National Minimum Wage.

Does this include employer NI savings?

We model only your personal tax and NI saved. Employers also save 13.8% NI on the sacrificed amount - some generous schemes pass this back into your pension.

Salary Sacrifice on a £45,000 Salary 2026/27

On a £45,000 UK gross salary, salary sacrifice reduces taxable pay pound for pound - so the headline sacrifice value escapes Income Tax + employee NI at your marginal rate. The net cost to your take-home is materially less than the headline sacrifice. Below shows 5%, 10% and 15% of salary sacrificed (pension or other benefit).

5% sacrifice

£2,250

Costs £1,620 take-home, saves £630 (28%)

10% sacrifice

£4,500

Costs £3,240 take-home, saves £1,260 (28%)

15% sacrifice

£6,750

Costs £4,860 take-home, saves £1,890 (28%)

Take-home comparison at £45,000

Scenario	Sacrificed	Take-home	Net cost vs zero sacrifice
No sacrifice	£0	£35,920	-
5% sacrifice	£2,250	£34,300	£1,620
10% sacrifice	£4,500	£32,680	£3,240
15% sacrifice	£6,750	£31,060	£4,860

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Frequently asked questions

What can I sacrifice my salary for?: Common UK schemes: pension contributions, cycle-to-work (bikes + accessories), EV car lease, childcare vouchers (legacy - closed to new joiners), holiday buy, technology schemes, gym memberships. All reduce your gross salary pre-tax.
How much tax do I save?: The sacrifice is deducted before Income Tax and National Insurance, so you save both. Basic-rate: 28% (20% IT + 8% NI). Higher-rate above UEL: 42% (40% IT + 2% NI). Additional rate: 47% (45% IT + 2% NI).
Are there any downsides?: Lower gross salary means: lower mortgage borrowing capacity, lower pension auto-enrolment base (if not on salary sacrifice), reduced maternity/redundancy pay, and lower state pension credits if you drop below the Lower Earnings Limit (£6,396).
Is salary sacrifice always allowed?: No - your employer must offer the scheme and HMRC must approve the benefit type. Your reduced salary cannot fall below the National Minimum Wage.
Does this include employer NI savings?: We model only your personal tax and NI saved. Employers also save 13.8% NI on the sacrificed amount - some generous schemes pass this back into your pension.