As an umbrella employee, there are some benefits available to you that can provide tax and NI savings via your payslip, For example: Pension salary sacrifice.
How does salary sacrifice work?
Salary Sacrifice is an agreement to give up some of your gross income which is paid into a workplace pension before any deductions such as employer and employee national insurance contributions (NIC), income tax as an employee and an apprenticeship levy.
This example compares what a Brookson Umbrella Employee could potentially save when putting a proportion of their gross income through Salary Sacrifice.
| £80,000 earnings + £0 pension | £80,000 earnings + £20,000 pension | Gross Income Tax and NI Saving | |
| | £ | £ | £ |
| Total Umbrella Income | 80,000 | 80,000 | |
| Brookson Margin (Umbrella) | (1,300) | (1,300) | |
| Pension Payments | | (20,000) | |
| Employer NICs & Apprenticeship Levy | (8,747) | (6,245) | 2,502 |
| Employee Income Tax & NICs | (18,822) | (11,473) | 7,349 |
| Taxable Income (gross pay) | 69,953 | 52,455 | |
| Take home pay | 51,131 | 40,982 | |
| Total remuneration package (taxable income, pension contributions) | 69,953 | 72,455* | |
| Total remuneration package (take home pay, pension contributions) | 51,131 | 60,982* | |
*Inclusive of lump sum pension
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.