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Posted Mon, 15 Aug 2022 12:58:24 GMT by Jonathon Chang
If I'm a higher rate tax payer and I earn £1000 above the basic rate/higher rate threshold. What happens if I'm to use salary sacrifice with my employer to sacrifice £2000 for a company scheme? Do I get the benefit as a 40% tax payer or as a 20% tax payer, or is it something in between, i.e. £1000 at 40% and £1000 at 20%?
Posted Tue, 16 Aug 2022 12:48:14 GMT by HMRC Admin 19
Hi,

We cannot respond to hypthectical situations, however you can see guidance here:

Salary sacrifice for employers

The following guidance describes the Income Tax effects of salary sacrifice:

EIM42755 - Salary sacrifice: income tax effects of salary sacrifice

Thank you.

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