£40,000 salary sacrifice 2026/27
On £40,000 for 2026/27, a 5% salary sacrifice of £2,000.00 cuts take-home pay from £32,319.60 to £30,879.60 — a reduction of £1,440.00 that buys a £2,000.00 pension contribution while saving the tax, NI (and any student loan) you would otherwise pay on it. The same contribution under net pay leaves you with £30,719.60.
| Method | Taxable income | Income tax | NI | Pension (you) | Take-home |
|---|---|---|---|---|---|
| No pension | £27,430.00 | £5,486.00 | £2,194.40 | £0.00 | £32,319.60 |
| Net pay (5%) | £25,430.00 | £5,086.00 | £2,194.40 | £2,000.00 | £30,719.60 |
| Salary sacrifice (5%) | £25,430.00 | £5,086.00 | £2,034.40 | £2,000.00 | £30,879.60 |
| Relief at source (5%) | £27,430.00 | £5,486.00 | £2,194.40 | £2,000.00 | £30,319.60 |
All figures are annual, England/Wales/NI, 2026/27, no student loan. A 5% contribution on £40,000 is ££2,000.00. Salary sacrifice reduces the NI and loan bases; net pay does not; relief at source keeps tax on full gross and adds 20% relief via the provider.