salary sacrifice for director with no salary

[RockyBalboa]

Is it possible to have a salary sacrifice scheme in a small business with Directors who have no salary?

(I know the answer is probs in the question)

Edited by RockyBalboa on Wednesday 14th September 19:11

[AyBee]

How might they sacrifice salary they don't have? Or do you mean you'd give them a salary so they could sacrifice it?

[RockyBalboa]

The latter potentially... vs personal contributions.

[Spinner20]

What are you trying to do? Pension contrib?

[andyb28]

RockyBalboa said:

Is it possible to have a salary sacrifice scheme in a small business with Directors who have no salary?

(I know the answer is probs in the question)

Edited by RockyBalboa on Wednesday 14th September 19:11

My company creates bespoke software for Lease Car websites / systems including Salary Sacrifice. So I am not a business expert.
However, what I can tell you is one of the first questions on the system is Salary as it has to check later if the sacrifice takes them below the National Minimum Wage.

So I think the answer is probably no.

You also wouldn't really benefit from it, the main attraction is to lower your salary and pay less tax.

[deckster]

The simple answer is yes, your company can make contributions directly into a personal pension scheme and these will be allowable against corporation tax. Usefully, they also don't attract Eers NI. So they genuinely are 100% tax free and an excellent way of getting money out of your company. They however still capped at your usual maximum rates i.e. £40,000 total contributions per annum for most people and assuming that your other relevant earnings aren't over £150k, otherwise the usual taper rules apply.

These contributions are allowed up to 100% of your salary so there are no minimum wage implications here.

That said, I have no idea how these would appear in your accounts (you'd need to give yourself a salary that is immediately reduced by 100% by the pension payments) so hopefully somebody more clued up on the admin side of things can clarify that.

This https://www.unbiased.co.uk/life/small-business/con... is a useful link, other Google results are available...