Salary Sacrifice - how to calculate maximum allowed

terry999

Hi 

I work 18 hours a week in one job only. 

Current NMW for those aged 23 and over is £9.50

Am I right in calculating my annual minimum would be:

       18 * 52 * £9.50 = £8,892

I pay monthly for Health insurance (£100) and company SIP (£50)

This £150 is deducted from my monthly wage Gross.

my minimum wage allowed per year is:

8,892 + (12 * 150) = £10,392

As long as I'm left with just over £10,392 can in theory sacrifice the rest?

Dazed_and_C0nfused

Is that your only taxable income?

terry999

Dazed_and_C0nfused said:

Is that your only taxable income?

I get some dividends, do they affect it

Dazed_and_C0nfused

They don't affect the amount you can sacrifice however it's not clear if using salary sacrifice is a sensible thing to do from a financial perspective.

Getting matching contributions from your employer would be a good reason but have you taken into account there is no pension tax relief with salary sacrifice as they are ultimately employer contributions.

Have you done the sums to see if relief at source contributions (to a SIPP or personal pension) are better for you given your seemingly low income level?