Salary Sacrifice Calculator
Compare your take-home pay before and after salary sacrifice for pension, an EV car scheme or cycle-to-work, using 2026/27 UK Income Tax and National Insurance.
Take-home after sacrifice
£40,863.04
Salary sacrifice reduces your gross pay in exchange for a non-cash benefit. Because Income Tax and employee National Insurance are charged on gross pay, sacrificing £1 typically saves 20p, 40p or 45p of Income Tax plus 8p or 2p of NI, depending on which band the sacrificed £ came from.
Figures use 2026/27 England / Wales / NI Income Tax bands, National Insurance letter A on monthly pay, and the standard 1257L tax code. For Scotland, student loans, taxable benefits or the High Income Child Benefit Charge, run the numbers through the main take-home calculator.
This tool is an estimate. It does not model the pension annual allowance, tapered allowance, employer NI rebates or scheme-specific admin fees, and it assumes the sacrifice does not take pay below the National Minimum Wage.
How salary sacrifice works
- You agree with your employer to give up part of your gross salary.
- The employer redirects that amount to a benefit — pension, EV lease or cycle-to-work bike.
- PAYE Income Tax and employee NI are calculated on the reduced gross pay.
- Your take-home falls by less than the amount sacrificed — the difference is your tax + NI saving.
Which sacrifices are supported here?
- Pension — employer-run salary-sacrifice pension. Saves Income Tax and NI on the sacrificed amount.
- EV car scheme — an ultra-low-emission-vehicle lease via your employer. Enter the annual gross sacrifice; the small Benefit-in-Kind charge (2% of list price in 2025/26, rising each year) is not modelled here.
- Cycle-to-work — bike + safety kit via a hire agreement. Usually a 12-month sacrifice; enter the annual amount for a like-for-like comparison.