About UK Salary Sacrifice Calculator

What this site is for

Use the salary sacrifice calculator to model the before-and-after impact of any salary sacrifice arrangement on your take-home pay. The calculator shows income tax saving, employee NI saving, employer NI saving, and the real monthly net cost of the sacrifice.

All calculations use published 2026/27 rates. The calculator supports both England/Wales/NI and Scottish income tax rates.

What we cover

• Pension salary sacrifice — income tax and employee NI savings, employer NI savings, the impact on take-home pay and the real net cost of contributions.
• Cycle to work schemes — how the exemption works, scheme caps, equipment that qualifies, and the ownership transfer rules at the end of the hire period.
• EV company car salary sacrifice — how the 2% benefit-in-kind rate interacts with sacrifice, how to compare a sacrifice car against a personal lease, and the total employer saving.
• Childcare and other schemes — legacy childcare vouchers, Tax-Free Childcare interaction, and other qualifying sacrifice arrangements.
• Effect on state pension and benefits — how reducing pensionable pay through sacrifice affects state pension entitlement, Statutory Maternity Pay and other earnings-related payments.
• Employer perspective — employer NI savings, National Living Wage floor constraints, and how to structure a salary sacrifice policy for a workforce.

How the site is maintained

• Calculator rates and thresholds are updated when HMRC confirms the new tax year NI and income tax figures.
• Guides are reviewed at each fiscal event and when HMRC updates its salary sacrifice guidance.
• Pages are updated when readers report unclear assumptions or outdated figures.
• We do not publish pages without practical value for a UK salary sacrifice audience.

Editorial approach

All content is reviewed against current HMRC and GOV.UK guidance for the active tax year. We prioritise factual accuracy and practical usefulness. Where assumptions are made, they are documented on the methodology page.

This site does not provide financial, tax or legal advice. For decisions about salary sacrifice, consult your employer's HR team or a qualified financial adviser.

Editorial ownership and contact

Editorial owner: James Whitfield, a UK personal finance writer with a background in salary sacrifice schemes, NI savings and employee benefits. James writes about pension salary sacrifice, cycle to work and EV schemes against HMRC and GOV.UK guidance.

For corrections or data-quality feedback: contact page

Last reviewed: May 2026. Tax year: 2026/27.