Working out required salary sacrifice %

j18psf

Hi All

First time post after many years improving my knowledge across various boards.

I am after some help working out what % I need to sacrifice to gain a net salary of between £2700 and £2800, below are all of the details regarding my monthly pay:

• Basic salary of £6784 gross
• Car benefit (payrolled) of £958 
• Fuel benefit (payrolled) of £632  
• I then have deductions of £142 for an extra weeks holiday purchase 
• There is an addition of £33 for medical
• The car details are a value of £38,000 and CO2 of 125
• Tax code of 1005L  

I would like to get under to come out with around £2800 in my hand, this will allow for some great contributions to the pension and also work with child tax benefit bandings.

I have used salary calculator apps on my phone but I am getting varying amounts and 1/2% changes can make big changes to pay

I would appreciate any help with this, I have until 15th June to change my contribution and this can be done on a month to month basis.

Thanks in advance

Woby_Tide

What is the current net take home based on those as the car etc will probably make it difficult for most to calculate?

MX5huggy

Any Student Loans? 

Is it really easy to change month to month? Because NI is worked out on pay periods (monthly I presume in your case). You’re better to reduce your salary to minimum wage (£9.50 per hour). For a number of months then go back to full pay. 

Grumpy_chap

j18psf said:

I am after some help working out what % I need to sacrifice to gain a net salary of between £2700 and £2800, 

I would appreciate any help with this, I have until 15th June to change my contribution and this can be done on a month to month basis.

Is it just your pension contribution that you are varying, or is this under a Salary Sacrifice (SS) arrangement?

SS can be found to be invalid if the sacrifice can be changed regularly as the SS is then considered to be "money's worth".  Usually, SS can only be varied if there has been a "life event" such as :

• COVID impact
• Marriage / Divorce
• Pregnancy
• Partner redundancy

Sometimes, there is an interpretation that the SS can be changed only once per year, but this seems to be applied differently by different SS scheme administrators.

MallyGirl

I can change mine as often as I like. Obviously it only takes effect once a month at payroll run

Bemma

I can change mine every month, but it used to be once a year or "life event".  I think this changed after auto enrolment became law as there was as there was a requirement to allow opt in/out at any stage of auto enrolment, so the rules were relaxed.

MoneySavingGerbil

j18psf said:

I have used salary calculator apps on my phone but I am getting varying amounts and 1/2% changes can make big changes to pay

If you're on Android I've always found PAYE Tax Calculator pretty accurate for working out my salary sacrifice net pay. I've been using it for years. There was a period when the tax tables didn't get updated for a while, but it now seems to be kept updated. Warning: The app is ad supported, but they're pretty unobtrusive and as you'd expect all tax related

https://play.google.com/store/apps/details?id=com.roblovelock.payefree&hl=en_GB

j18psf

We are allowed to change very month as long as it is submitted by a set date. 

The take home if I were to
do the basic 1.5% contribution (work pay 8.5%) is £3716 if that helps as mentioned the car plays a part in calculating contributions 

noclaf

My employer scheme also allows SS to be varied month to month, changes need to be made by 15th of the month.

I use www.thesalarycalculator.co.uk* to play around with my numbers when attempting to target a specific take-home and if I input my tax code, student loan and SS % the take-home figures tend to come out fairly close to my payslip.
 * No affiliation or links etc