Take as Cash

£0

Net after tax & NI

Put in Pension

£0

Gross pension amount

Total Tax & NI Saved by Sacrificing

£0

Enter your details to see the saving

Income Tax Saved

£0

Employee NI Saved

£0

Effective Bonus Tax Rate (cash)

Amount Sacrificed

£0

Cash Bonus (remaining)

£0

Net Cash Received

£0

Annual Allowance Warning: Your total pension contributions (£0) may exceed the £60,000 annual allowance for 2026/27. Contributions above the allowance are subject to a tax charge. Seek financial advice if this applies to you.

Bonus Comparison Breakdown

Item	Take as Cash	Sacrifice All
Gross Bonus	£0	£0
Income Tax	£0	£0
Employee NI	£0	£0
Employer NI Added	£0	£0
You Receive / Pension Gets	£0	£0

Adjust your inputs above to see your personalised saving.

How Bonus Sacrifice Works

When you sacrifice your bonus into a pension, the money goes to your pension before income tax and National Insurance are calculated. This means the full gross amount lands in your pension pot · nothing is deducted. Compare that to taking it as cash, where you pay income tax at your marginal rate plus employee NI.

Basic-rate taxpayer: Taking a £5,000 bonus as cash costs 20% tax + 8% NI = you keep £3,600. Sacrificed to pension: the full £5,000 goes in. You are £1,400 better off in the pension.

Higher-rate taxpayer: Taking a £5,000 bonus as cash costs 40% tax + 2% NI = you keep £2,900. Sacrificed: the full £5,000 goes in · a saving of £2,100.

£100,000 trap: If your salary plus bonus crosses £100,000, your personal allowance tapers (£1 lost per £2 over). Bonus sacrifice can pull your income back below this threshold and restore the allowance, creating an effective 60% saving on that portion.

🎁

Enter your salary and bonus above

We will show you exactly how much you save by putting your bonus in your pension versus taking it as cash.

Bonus Sacrifice Savings · Quick Reference 2026/27

Net cash vs gross pension for a full bonus sacrifice. England rates. Assumes salary is already within the tax band shown.

Bonus	Tax Band	Net Cash (take home)	Gross Pension	Extra in Pension	Effective Saving
£1,000	Basic (20%)	£720	£1,000	£280	28%
£5,000	Basic (20%)	£3,600	£5,000	£1,400	28%
£10,000	Basic (20%)	£7,200	£10,000	£2,800	28%
£1,000	Higher (40%)	£580	£1,000	£420	42%
£5,000	Higher (40%)	£2,900	£5,000	£2,100	42%
£10,000	Higher (40%)	£5,800	£10,000	£4,200	42%
£20,000	Higher (40%)	£11,600	£20,000	£8,400	42%
£10,000	Add. Rate (45%)	£5,300	£10,000	£4,700	47%

Basic rate saving = 20% tax + 8% NI = 28%. Higher rate saving = 40% tax + 2% NI = 42%. Additional rate saving = 45% tax + 2% NI = 47%. Employer NI sharing not included. Use the calculator for your exact situation.

Bonus Sacrifice Calculator FAQs

Can I sacrifice my bonus into my pension?

Yes · if your employer operates a salary sacrifice (also called SMART or salary exchange) scheme that covers bonus payments. Not all employers allow it, so you need to check your employment contract or ask HR before your bonus is paid. The arrangement must be agreed in writing before the bonus is processed · you cannot backdate it after it has appeared on a payslip.

What are the tax benefits of bonus sacrifice?

Sacrificing your bonus avoids both income tax and employee National Insurance on the amount sacrificed. A basic-rate taxpayer saves 28p per £1 (20% tax + 8% NI), a higher-rate taxpayer saves 42p per £1 (40% tax + 2% NI), and an additional-rate taxpayer saves 47p per £1. The full gross amount goes into your pension · nothing is deducted. If your salary plus bonus is close to £100,000, sacrifice can also restore your personal allowance, effectively saving 60% on the affected portion.

Does my employer have to allow bonus sacrifice?

No · bonus sacrifice requires your employer's agreement and is not a legal right. Many employers do offer it, particularly in the private sector, but it is at their discretion. The employer also saves 13.8% employer NI on the sacrificed amount. Some employers pass this saving back to the employee as an additional pension contribution, which can significantly boost your pot further. It is always worth asking, as even a partial sacrifice can deliver a meaningful saving.

Is there a limit to how much bonus I can sacrifice into my pension?

Your total pension contributions (employee, employer and bonus sacrifice) must not exceed the annual allowance of £60,000 for 2026/27, or 100% of your UK earnings if that is lower. High earners with adjusted income above £260,000 face a tapered annual allowance down to a minimum of £10,000. If you have unused allowance from the previous three tax years, you may be able to carry it forward. The calculator will warn you if you appear to be approaching the limit.

What if I only want to sacrifice part of my bonus?

You can sacrifice any percentage of your bonus · it does not have to be all or nothing. Use the slider in the calculator to model partial sacrifice. The results show both the net cash you keep on the unsacrificed portion and the gross amount going into your pension. Partial sacrifice is useful if you need some cash now but still want to reduce your tax exposure on a larger bonus.

Bonus Sacrifice Calculator UK 2026/27

Bonus Sacrifice Savings · Quick Reference 2026/27

Related Calculators

Bonus Sacrifice Calculator FAQs