What is salary sacrifice?

Salary sacrifice may be perfect for you if you’re looking to boost your personal pension pot and save tax-efficiently for retirement. Please continue reading to learn more about salary sacrifice and how it works.

What is salary sacrifice?

As a contractor, saving for retirement and making the most of your pension is incredibly important. Churchill Knight Umbrella’s salary sacrifice service is a tax-efficient way to contribute to your personal pension pot. With salary sacrifice, you agree to sacrifice a percentage or set amount of your gross salary each week/month to be paid into your personal pension pot. You can receive tax relief and save up to £60,000 per tax year or up to 100% of your annual earnings – whichever is lower. It is also possible to carry forward any unused allowance from previous years.

What are the benefits of salary sacrifice?

There are many benefits of using a pension salary sacrifice service, including:

• Potential to increase your take-home pay – You may increase your take-home pay using salary sacrifice, depending on the amount you choose to sacrifice and the tax due on your remaining wage.
• Grow your pension pot faster – You can choose how much of your salary to sacrifice each week/month, and the increased pension contribution will allow you to grow your pension pot more quickly.
• Extra pension tax relief – You’ll only receive tax relief at the highest income tax rate you pay on contributions to workplace pensions. On the other hand, contributions to pensions via salary sacrifice are not subject to National Insurance or income tax, offering a tax-efficient way to save for retirement.
• Reduce your tax liability—Salary sacrifice pension contributions are taken from your salary before tax is deducted, reducing your taxable income. Therefore, the employee and employer National Insurance Contributions are reduced, and you will also pay less income tax on your remaining salary.

Churchill Knight Umbrella’s salary sacrifice service is incredibly flexible. You can change the amount you would like to contribute each week/month to your pension. For example, if you would like to allocate a bigger amount to your pension one payday and slightly less the next payday, you can. We simply ask that you give us 24 hours’ notice.

How does salary sacrifice work?

If you are an employee of Churchill Knight Umbrella and would like to add salary sacrifice to your payroll service, getting started is easy, and our Customer Service team is on hand to help every step of the way. To get started, let us know you would like to add salary sacrifice to your service and provide us with information about your pension provider and the amount you would like to contribute.

If you are interested in registering with Churchill Knight Umbrella and benefitting from our salary sacrifice service, please call us on 01707 871622 to find out more about the service. You can also request a tailored take-home pay illustration to see how much you could contribute to salary sacrifice.

Schedule a free consultation with a Financial Adviser

If you are interested in salary sacrifice but still need to set up a personal pension, don’t worry! Churchill Knight Umbrella has teamed up with specialist Financial Advisers to offer you a free consultation to discuss pension providers. Once you’ve found the right pension provider for your circumstances, we can set up salary sacrifice quickly and without complications.

To schedule a consultation, please complete the short form on our website.

Request a take-home pay calculation for our salary sacrifice service

If you are interested in Churchill Knight Umbrella’s salary sacrifice service and would like to discover the benefits of contributing to your pension via salary sacrifice, please call 01707 871622. Our expert team will provide you with a tailored take-home pay calculation, including deductions for salary sacrifice, and answer any questions you may have.