HMRC - 2023-2024 - Tax Returns?

[Zefan]

Minor point close to VED/Road tax debate - but salary sacrifice is a third type of thing altogether. That's where employers agree to pay you less to save on NI and then pay the difference + usually a % of their saving directly into your pension.

So the only difference is NI right?

 

[dlockers]

So the only difference is NI right?

Potentially - but it's actually a better scheme altogether, because your employer often passes over THEIR employer NI saving to you - and given NI has gone up, that may be material. It also theoretically affects how you report your salary when applying for credit etc. As you no longer earn 50k, you earn 40k with a 10k+"bonus" paid into your pension.