Client receiving a Bonus
Individuals receiving a bonus could ‘sacrifice’ some or all of that amount, so that the employer can make a corresponding contribution (including the National Insurance Savings) into a pension plan.
- Rick Tyre receives a salary of £100,000
- He is due a bonus of £25,140 and thinking of paying all of it as a pension contribution
What will be the impact if he ‘sacrifices’ this bonus into a pension?
Solution = Salary Sacrifice calculator