Posted on 4th August 2026
Salary Sacrifice in 2026/27
Salary sacrifice can be a useful way to increase pension savings, access certain employee benefits and reduce tax and National Insurance, but the right arrangement depends on much more than the headline saving. This spotlight guide explains how salary sacrifice works in 2026/27, including its use for pension contributions, electric cars, cycle-to-work schemes and workplace nurseries. It also looks at how salary sacrifice can help manage income around important tax thresholds, including the High Income Child Benefit Charge and the withdrawal of the Personal Allowance. Alongside the benefits, the guide highlights the potential effect on statutory pay, mortgage applications, minimum wage rules and pension allowances, as well as the National Insurance changes due from April 2029. The key is to review the full impact before agreeing to reduce your contractual salary.
