Salary Sacrifice Calculator
The salary sacrifice calculator aims to illustrate how such schemes work from both the employee's and employer's perspective.
On the first page input current gross salary before sacrifice and adjust the assumptions if necessary.
From the second page, select a derivative to see the impact on the driver, where scenario one shows the position before salary sacrifice and scenario two is after salary sacrifice. The employee gets the use of a car and insurance for the amount shown.
The sacrifice required is calculated to have a neutral impact on the employer. After viewing the calculation Click on 'Impact on Employer' to see how this works.
For low CO2 cars, the salary sacrifice required will often be less than the cost of running a car out of taxed income, but many other factors are involved. This tool aims to illustrate how such a scheme may work.