This calculator is designed to demonstrate the impact on income tax, national insurance and pension provision where exchanging salary for an employer's pension contribution.
The calculator is only suitable for individuals under state pension age.
The above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice all of which is subject to change without notice.
The impact of taxation and any other reliefs depends on individual circumstances.
In 2019/2020, the personal allowance is £12,500. Tax legislation states that it may be deducted in the way which will result in the greatest reduction in the taxpayer's liability to income tax. The calculator however proceeds on the basis that it is offset firstly against non-savings income, then savings income and then dividend income. In particular circumstances, a different order may produce a more beneficial result for the individual.