The purpose of a salary sacrifice is for an employee to agree to swap part of their salary for a non cash benefit from their employer, such as pension contributions.

As the employee’s salary is lowered by the contribution, then they pay less income tax and National Insurance and the employer pays less Employer National insurance contributions.

If you require any further information, do not hesitate to contact us at Beach Accountants to advise you on the schemes as well as assisting in the setting up of the schemes and obtaining the appropriate HMRC approval.