Sacrificing salary canboost pensions

Salary sacrifice allows policyholders to boost pension contributions through savings on national insurance contributions, although there is no direct income or corporation tax relief benefit. It is an arrangement whereby an employee agrees to a reduction in gross salary in return for their employer agreeing to contribute towards some other non-cash benefit, often a pension arrangement. A typical example might be an employee who earns less than the upper earnings limit ' £30,940 in tax year 2003/04 ' who is considering contributing £1,000 of their income into a pension arrangement. ...