Before You Start. A Few Things to Know.
This calculator is here to give you a quick, illustrative view of how salary sacrifice might work for you and what sort of tax and NI savings you could make. It’s not personal financial advice, and it won’t give you exact figures. For tailored guidance, we always recommend speaking to an accountant or financial adviser.
How this calculator works
It’s based on the Net Pay Arrangement where pension contributions come out of your salary before tax is applied.
It doesn’t support Relief at Source schemes, where tax relief is added after you’re paid.We’ve built it using the latest understanding of UK salary sacrifice rules and 2025/26 tax legislation. But tax laws can change and it's always worth checking the details with your employer or adviser.It’s designed for UK taxpayers only not suitable for Scotland.
Your salary after sacrifice must stay above the National Minimum Wage. Employers are responsible for making sure this rule is followed.
What we’ve assumed
To keep things simple, the calculator assumes:
You’re part of a defined contribution pension scheme using Net Pay.
You haven’t triggered the Money Purchase Annual Allowance or Annual Allowance charge.
You’ve got no other income or pension contributions beyond what you enter here.
Your pay and contributions stay the same throughout the full tax year.
A few limitations
It doesn’t currently account for employees who started or left their job part-way through the year.
The calculator uses standard UK tax bands for 2025/26 so if you're a Scottish taxpayer, the results won’t be accurate.
You can’t enter pension contributions that exceed your annual allowance (including carry forward).
The results may not be accurate if your salary after sacrifice:
Drops below £12,570 (the National Insurance primary threshold).
Goes over £200,000, which can affect your personal allowance through tapering.
