Salary Sacrifice (also known as Salary Exchange) can help reduce the cost of providing a workplace pension and some other flexible benefits by decreasing the National Insurance (NI) you and your employees pay.
How does Salary Sacrifice work?
- Step 1: Your employee gives up the part of their salary (the amount they wish to contribute)
- Step 2: You make an employer contribution for the equivalent amount
- Step 3: By reducing the salary your employee receives, both you and your employees pay less National Insurance
With which benefits can I use Salary Sacrifice?
Salary Sacrifice is long-established as a means of paying pension contributions. HM Revenue & Customs have also agreed it can be used to fund a range of flexible benefits, including:
How can Hargreaves Lansdown help?
If you're considering salary sacrifice, it's important to get advice which is specific to the needs of your business. Hargreaves Lansdown can guide you through this process by:
Talk to us on 0117 314 1783 or email us.
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