Example

Salary sacrifice on £70,000

A worked example showing a higher earner using sacrifice to reduce effective tax drag.

Worked example2 min readRuleset 2025-26Reviewed by PayPath UK editorial reviewMethodology

Scenario

At £70,000, salary sacrifice is often assessed against higher-rate tax and standard employee NI on the sacrificed slice.

Practical takeaway

The decision is usually about balancing stronger tax efficiency against the opportunity cost of lower disposable income now.

How to use PayPath here

Run the relevant calculator for your live numbers, review the methodology if the assumptions matter to your decision, and save the strongest scenarios in the workspace if you are comparing more than one option.