Wifes business, setting up a salary sacrifice pension scheme

[996owner]

Hi,
My wife currently owns a small business, 9 members of staff (some part time) 6 pay into a pension pot.

We've just been talking about pensions, my pension is with a large employer via a salary sacrifice scheme (provided by Aviva) thus I benefit from a small tax advantage.

Wife's company uses Nest, I have advised her to look at getting this to be a salary sacrifice scheme but advice seems difficult to find. Has anyone any experience of this for their business?

Thanks in advance

[quinny100]

I don’t think you need to do anything with the pension provider.

Salary sacrifice is an arrangement between the employer and the employee. For pensions it’s simply a matter of the employer making a larger employer contribution increased by the amount the employee has agreed to sacrifice from their salary.

All you need to put in place are the appropriate payroll arrangements.

The advantage of a salary sacrifice pension is a small saving on national insurance for both the employer and the employee. Very roughly it’s about £300 saving each per £2500 sacrificed for basic rate taxpayers.

Edited by quinny100 on Friday 29th December 09:42

[Spinner20]

- get all employees to sign a sacrifice letter
- move to SS on Nest (all employees need to move or none)
- start benefiting from less tax
- get your wife out of Nest and into a decent SIPP