Salary sacrifice query?

[Deleted User]

We have our pension taken out via salary sacrifice so save the tax & ni. Does the government also put in 20% on top of that? I assumed not but could be wrong. If I sacrifice £80 a month will I also get £20 tax relief added!? Thanks

Lokolo

Salary sacrifice works by putting your contributions via the company. There is no tax relief on employer contributions so no, they don't give additional tax relief.

greenglide

But of course if you sacrifice £80 then £80 (at least - depending if the employer adds to it) gets paid into the scheme but the cost, to you, is £80 less %20 tax (or more) + %12 NI (unless above the UEL - £41,865 this year).

The 12% extra is so, so sweet!

xylophone

http://www.scottishlife.co.uk/scotlife/Web/Site/Adviser/TechnicalCentralArea/FAQsArea/Questions_and_Answers.asp

might be worth a browse.