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2. What is Salary Sacrifice?
3. The opportunity
Higher pension savingsNo additional cost 4. What would you like in your pension pot? Note: higher rate tax payer SalarySacrifice 5. For every 1 you earn
Note: basic rate tax payer 6. For every 1 you earn
Note: higher rate tax payer 7. Example report
*assumes tax year 2009/10 and includes full employer NI saving Before sacrifice After sacrifice Gross earnings 30,000 28,609 Income tax 4,465 4,427 NI 2,671 2,518 Earnings less tax and NI 22,864 21,664 Personal contribution (gross) 1,200Nil Net income 21,664 21,664 Company contribution* Nil 1,569 8. Notional or reference salary
9. Which benefits might be adversely affected ?
10. Setting up Salary Sacrifice
11. Arranging the sacrifice Example letter (on company headed paper) Dear With effect from dd/mm/yy your salary will reduce by xx pa (from yy pa to zz pa). In return we will pay a pension contribution of aa pa on your behalf. Please indicate your agreement to this reduction by signing both copies of this letter and returning one copy. For and on behalf of the company .. I confirm my agreement .. Date .. (prior to the date shown above) 12. HMRC help
13. Website example 14.
AEGON and Salary Sacrifice Note: higher rate tax payer SalarySacrifice Good luck 15. Important information from our lawyers