⚠ April 2029 Salary Sacrifice NIC Cap — Autumn Budget 2025
From 6 April 2029, only the first £2,000 of pension contributions via salary sacrifice are exempt from NICs.
Contributions above £2,000 will attract both Employer NI (15%) and Employee NI (8%/2%) —
significantly reducing the efficiency of large sacrifices. Income Tax relief is unaffected.
Inside IR35 — Umbrella Company: You are treated as an employee for tax purposes.
Employer's NI (15% above £5,000), Apprenticeship Levy (0.5%), and umbrella fees are all deducted from your assignment rate
before you receive any pay. Pension sacrifice reduces your taxable income, saving Income Tax and Employee's NI.
Contract Details
Used to calculate umbrella fee (charged weekly)
Most umbrellas retain holiday pay separately
Recommended Annual Pension Sacrifice
—
— per month
—
Monthly Net Take-Home
—
Annual Pension Contribution
—
Tax & NI Saved vs No Sacrifice
Manual Adjustment
£0
Drag to explore different contribution levels
Student Loan Repayments
Select your repayment plan:
Plan 1
Threshold £24,990 9% above
Plan 2
Threshold £27,295 9% above
Plan 4
Threshold £31,395 9% above (Scotland)
Plan 5
Threshold £25,000 9% above
Postgrad
Threshold £21,000 6% above
Plan 1 + PG
Both loans combined
Repayments are calculated on gross income after pension sacrifice — salary sacrifice reduces your student loan deduction too.
Child Benefit (HICBC)
1
The High Income Child Benefit Charge (HICBC) claws back Child Benefit at 1% per £200 of income above £60,000 — fully withdrawn by £80,000. Pension sacrifice reduces your adjusted net income, potentially recovering some or all of your Child Benefit.
2025/26 rates: £26.05/wk for eldest child · £17.25/wk per additional child.
⚠ High Income Child Benefit Charge — Your income is in the HICBC taper zone (£60,000–£80,000). You are losing of Child Benefit per year. Increasing pension sacrifice to bring your adjusted net income below £60,000 would fully restore your Child Benefit.
⚠ Personal Allowance Taper Zone — Your taxable income falls between £100,000 and £125,140. Your Personal Allowance is being reduced by £1 for every £2 above £100,000, creating an effective 60% marginal tax rate in this band. Increasing your pension sacrifice to bring income below £100,000 could recover your full Personal Allowance and significantly reduce your tax bill.