What is  Salary Sacrifice?

How It Works?

It operates by lowering an employee's taxable income, which can result in substantial tax savings. Assume you earn £40,000 per year and opt to participate in a salary sacrifice scheme for £1,000 in childcare vouchers each year. Instead of paying you the full £40,000 salary, your company deducts and as a result, your taxable income falls to £39,000.

Does Salary Sacrifice Affect Universal Credit?

If your lower taxable income as a result of salary sacrifice puts you below certain government-set criteria, it may affect your eligibility for universal credit.

Examples of Salary Sacrifice Schemes

Childcare VouchersChildcare Vouchers with     a Higher SacrificePension Contribution

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