Salary Sacrifice Calculator
6 January 2021
How much could you save from Salary Sacrifice?
We've explained how Salary Sacrifice plans work, so now you'll want to see for yourself how much you or your employer could save.
What Does Our Salary Sacrifice Calculator Do?
We've split our Salary Sacrifice calculator between employers and employees.
The Employee Salary Sacrifice calculator estimates the net cost of Salary Sacrifice to the employee including:
- the adjustment to pay required to get a car under Salary Sacrifice
- the difference in tax, NIC and pension scheme contributions between 'cash' pay and Salary Sacrifice
- the net pay and net delivered value of the employee's pay packet before and after Salary Sacrifice
The Employer Salary Sacrifice calculator estimates all of the items in the Employee calculator plus:
- employer's national insurance contributions
- employer's pension scheme contributions
- VAT recovery and business tax relief
- the employer's total cost of Salary Sacrifice before and after tax relief/recovered VAT
We've built the calculator to cover lots of different permutations of pay, bonus, overtime and pension benefits, but dont worry if your exact arrangements aren't shown.
Call or email us during normal office hours to talk about the specifics of your arrangements.
What You'll Need
To get started with our Salary Sacrifice calculator here's what you will need for each version ....
Employers:
- A monthly contract hire quote for the car the employee wants, including maintenance and breakdown recovery
- An annual insurance cost for the car
- Your business's tax rate and VAT recovery rate
- A decision on whether or not you will reclaim unrecoverabe VAT on contract hire rentals from the employee
- If the car is not electric, whether or not you will reclaim unrecoverabe business tax relief on lease rentals from the employee
Don't worry if you haven't got all this yet - you can still estimate the cost impact using values our Salary Sacrifice calculator will provide automatically.
Employees:
- Your pay and your tax code - a copy of your last payslip will have the details
- A monthly contract hire quote for the car you want, including maintenance and breakdown recovery
- An annual insurance cost for the car
Again, if you don't have the car details then just accept the suggested finance and maintenance values that appear in our Salary Sacrifice calculator and use your own insurance premium as a starter.
With either Salary Sacrifice calculator you can always try it now, then research any missing items to get a more acurate comparison when you have the details.
If you're using the Employee Salary Sacrifice calculator we'll make some assumptions about how your employer will deal with business issues such as unrecoverable VAT on lease rentals and disallowed tax relief.
This is because these factors impact on how much you might be recharged by your employer in a Salary Sacrifice plan.
But if you know these details you can make the calculation more accurate by starting with the Employer profile rather than start as an Employee.
How Long Will It Take?
If you have all the information ready then the calculations take literally just a minute or two, whether your an employee or employer.
If you don't have all the details then allow about 5 minutes to work through the stages of the calculator.
So Let's Get Started!
Click on the appropriate button below to get your Salary Sacrifice calculation started:
Employer
Salary Sacrifice
Calculator
Start by creating a profile for the employer with business tax rates and pension contributions.
Employee
Salary Sacrifice
Calculator
Start by creating a personal profile with salary and tax details.