HMRC Tax & NI Optimization
UK Pension Salary Sacrifice Calculator
Compare Tax & National Insurance savings between Salary Sacrifice and Relief at Source pension contributions.
Salary & Contribution Inputs
Pension Tax Savings Estimator
Enter your salary and contribution percentage to see your exact Income Tax and National Insurance savings.
Frequently Asked Questions (FAQ)
Salary Sacrifice saves Employee National Insurance (NI) contributions (8% or 2%) in addition to Income Tax relief, whereas Relief at Source saves zero National Insurance and requires higher rate taxpayers to manually reclaim 20%-25% tax relief via Self-Assessment.
For every £2 earned above £100,000, your UK Personal Allowance is reduced by £1. Sacrificing salary directly into a pension reduces your Adjusted Net Income, restoring your Personal Allowance and giving an effective 60% tax saving.
Employers save 13.8% Employer NI on the sacrificed salary. Many generous UK employers pass some or all of this 13.8% saving directly into the employee's pension pot.