A method whereby your personal pension contributions could potentially be made in a more tax efficient way.
Each year we will invite you to enter the Practicus Salary Sacrifice Scheme. Invitations will be sent in February taking effect on 6th April (start of the tax year). This agreement will continue until you let us know otherwise.
Notice of withdrawal from the scheme can be given in February each year to take effect on 6th April.
This contract will allow you to sacrifice some of your basic salary into your pension fund from a minimum of 5% of your basic salary up to the maximum amount of £40k per annum (and providing the salary does not fall below the minimum wage). This will be a fixed amount each month for the duration of the 12-month contract and will be paid into your pension from your gross salary (pre-tax).
On top of this potentially being tax efficient for you, Practicus will also voluntarily top up the pension contribution with the 13.8% Employer NI Savings (or the current rate if this changes) we make from reducing your basic salary.
Should you utilise Salary Sacrifice, your contract of employment will be altered to reflect the fact that you will receive a lower salary. We will however retain a note of your ‘Notional Salary’ (i.e. the annual salary before Salary Exchange) for use in references, employee benefits etc.
Please note that if you choose to join this scheme it will be incorporated into the Practicus Qualifying Workplace Pension Scheme and any contract will replace the standard contributions made within this existing Pension Scheme.
Pension rules are ever changing, and we highly recommend you investigate any impact of any contributions made.
You can find further information at:
This scheme can be withdrawn by the company at any time.