Salary sacrifrice scheme

seabiscuit_2

I need some advice for a work salary sacrifice scheme for childcare.

I have the opportunity to take this out through work, but it will mean my annual salary lowers to around 6k per annum.

Am I correct in the following thinking?

That I wouldnt be paying tax or NI, but because it is higher than the lower earnings level of £5668 (or £109 per week) it will still contribute towards benefits?

Does this benefit include state pension? Im asking as I am mid 40's without any personal pension and took time out as a stay at home mum (am also taking out a work pension with their contributions) but want to ensure Im covering as many bases as possible.

Any other downsides I need to think about before signing on the dotted line? As if my calculations are correct it is a hefty saving for us.

Thanks

xylophone

6k per annum

. Will this reduce your cash salary to below national minimum wage?

Savvy_Sue

Also bear in mind that it is your sacrificed salary which will be used to calculate your entitlement to redundancy pay (should that ever be an issue), paid notice, and maternity pay.