What is Salary Sacrifice?
Salary sacrifice is a tax efficient way to make sure that you are paying more into your pension pot. It is a contractual agreement between yourself and your Umbrella service provider or employer whereby you choose to sacrifice a specified amount of your salary into a private pension. Your overall pay will then be reduced by the amount you have chosen to sacrifice, meaning you pay less income tax and National Insurance. It is worth remembering also, that pension contributions are not subject to tax and National Insurance, making this an extremely tax efficient way to save for your retirement.
Can I do this through Husp?
Yes, you can! For a small admin cost per month, we will deal with the administration of your pension contributions via salary sacrifice to ensure that your income is processed as tax efficiently as possible through our Umbrella Solution.
Some useful points to consider:
Most umbrella companies will offer to enrol you into their workplace pension scheme under auto-enrolment, but remember, this is their minimum legal obligation to you as your employer.
Some umbrella companies will offer to accommodate a private pension scheme, but not provide scope for you to choose the pension provider.
We will, of course, offer to enrol you under our workplace pension scheme through auto-enrolment, and we are also happy to accommodate most private pension scheme arrangements or SIPP.
Feel free to call us on 0333 003 7831, or email us at firstname.lastname@example.org if you have any questions.