Salary sacrifice calculation

[AdemVincen]

Hello all,

My employer is now offering a salary sacrifice scheme for cars.

Annoyingly the portal they use doesn’t give you individualised quotes, you have to contact payroll, they then contact the leasing company to get the quote and provide you with the full financial breakdown. More annoyingly it seems like only one person is doing this job and they’re on holiday for a number of weeks. So rather than having to wait and badger them for quotes I guess it’s just quicker to work this out myself.

If someone is kind enough to check my workings, that would be great.

Just to keep things simple with the salary.

Without salary sacrifice

Gross salary = £40000
Pension = Gross * 6.8% = £2720
Tax = (Gross – Pension – 12570) * 20% = £4,942.00
National Insurance = ((Gross / 12) – 1048) * 13.25% * 12 = £3,633.68
Student Loan = (Gross – 20195) \* 9% = £1,782.45

Net monthly pay = Gross – Total Deductions – £2243.49

With salary sacrifice

Car salary sacrifice = £4590.85
Gross salary = £35409.15
Pension = £2407.82
Tax = £4,086.27
National Insurance = £3,025.39
Student Loan = £1,369.27
BIK p.a. = £139

Net monthly pay = £2031.78

So net monthly salary lost would be £211.71 per month.

Does that look right?

Obviously there would be the pension hit to tale into consideration as I’m in a CARE scheme

[KayleeAdams]

<p>Your calculations for the gross salary, pension, tax, national insurance, and student loan payments seem to be accurate. However, it’s difficult to confirm them without access to the specific details of your employment contract, such as tax and National Insurance thresholds. So, if you want to be more sure, enter all the data into a pay stub creator and let it handle the math. If you’re interested, discover all the info here. Besides, it may be wise to consult with a financial advisor or HR representative to fully understand the potential effects on your overall financial situation.</p>

• This reply was modified 3 months, 4 weeks ago by KayleeAdams.

[chachaflint]

I wonder if it is possible to find a job without being an adult? I agree even for a small salary.

[SamHanson]

I think that now there is no problem in finding a good job. In addition, I believe that it will be much better for a child if he starts earning his first money in one of the professions that can be checked in this article https://resumekit.com/blog/jobs-that-hire-at-15-years-old/ than if he got money from his parents. Subsequently, it will be much easier to find a job, already having a similar experience.

[Author]

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