Fiducia TogetherSalary sacrifice
Giving up salary in exchange for a benefit. Saves tax and National Insurance on some things.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Under salary sacrifice an employee agrees to a lower salary in return for a non-cash benefit.
Why it matters
Successive restrictions removed the advantage for most benefits. It survives for pensions, cycle to work, ultra-low emission cars and workplace nursery.
What it looks like in practice
The contract must actually change — it is a variation of terms, not a deduction from pay. Get it in writing.\n\nWatch the effect on minimum wage: sacrifice cannot take pay below it.
What to watch out for
Effects on statutory pay, pension contributions based on salary, and mortgage applications, all of which use the reduced figure.
Where to get proper advice
Your accountant.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.