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Adviser  >  Your business  >  Salary Sacrifice  >  Salary Exchange Calculator

IMPORTANT NOTE: Budget changes made in 2009 mean that those who earn £130,000 or more and use salary exchange may not receive the effect of higher rate or additional rate tax relief on their pension payments. However, any salary exchange agreement in place before 22 April 2009 for individuals earning more than £150,000, or before 9 December 2009 for individuals earning between £130,000 and £150,000, will be unaffected until the expiry of the agreement.

You can find more details of these changes on our Technical Central website.

Salary Exchange Calculator

Fill in the fields below then hit calculate. help

Output Detailed Basic Employee name Employer name Yearly salary Yearly employee payment (amount exchanged £) Employee payment method Net Gross Yearly employer payment (£) Tax allowance

Budget changes made in 2009 mean that your tax allowance, if you have one, will be reduced by £1 for every £2 that your yearly salary exceeds £100,000 until your tax allowance is reduced to nil.

Convert employee savings* Yes No Convert % of employer savings

* required

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Notes :

The figures are based on tax and National Insurance rates effective from 6th April 2010.

The figures shown are for illustration purposes only and do not constitute any form of advice. You should speak to your own financial adviser in this respect. You may be charged for any advice given by your financial adviser. Any such charge or cost should be confirmed at outset.

The Net Annual Payment shown takes account of basic rate tax relief only where payments are made net from net pay. Higher rate tax and additional rate tax are taken into account in the calculations however the amount of higher rate and additional rate tax relief actually available will depend on individual circumstances.

The statement assumes you are under State pension age and contracted-in to the State Second Pension (S2P).

Salary exchange could reduce your entitlement to statutory benefits, means tested benefits, tax credits or other salary related finances, for example mortgages.

References to taxation are based on our understanding of the current law and practice and may be affected by changes in legislation or an individual's personal circumstances. Annual amounts of earnings thresholds and limits are used when calculating National Insurance Contributions.

If Salary exchange is set up on a percentage of salary basis, note that the actual amounts payable may be slightly different to those shown due to rounding.

Scottish Life accepts no responsibility for any loss as a result of relying on the figures in the calculations shown.

For professional advisers only

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