Ball park savings information
Salary sacrifice schemes, particularly those related to vehicle acquisition like electric vehicles (EVs) and low-emission cars, present an intriguing opportunity for individuals to potentially save on taxes and National Insurance contributions.
The AVC salary sacrifice calculator showcases saving examples that may be achieved by opting into a employer salary sacrifice scheme, were by an individual agrees to forego a portion of their salary before tax deductions, in exchange for a non-cash benefit – our headline price salary sacrifice saving examples are based on someone with an annual salary of £35,000, using the standard NI 1257L tax code and assuming with 0% pension fund contributions, these savings can be significant, especially when adjusted for personal circumstances through tools like the AVC salary sacrifice slider.
This slider allows for a customized approach, enabling adjustments based on one's specific financial situation and goals.
Nevertheless, it's imperative to approach the AVC savings estimates with caution. The figures provided by salary sacrifice calculators serve as a guide and may not fully account for the complexities of one's tax situation, other deductions, or specific rules of pension schemes. Given this, the role of an accredited accountant cannot be overstated. An accountant can offer a comprehensive review of one's financial situation, providing personalised advice that ensures decisions are made with a clear understanding of the implications for tax, National Insurance, pension contributions, and overall financial health. Ultimately, while salary sacrifice schemes offer a promising avenue for savings, especially on electric vehicles, the importance of professional financial advice in navigating these opportunities is crucial for making informed decisions that align with one's financial and retirement planning objectives.