Lancashire Renewables
Is a salary sacrifice scheme right for you?
Financial advice you can rely on
Fox Lifestyle Financial Planning has partnered with Lancashire Renewables to provide clear, straightforward guidance on workplace pensions and financial wellbeing.
This collaboration is all about helping staff make the most of their pension benefits, understand their options, and feel confident about their financial future.
Benefits of Salary Sacrifice
Salary sacrifice redirects part of your pay into your pension before tax and National Insurance are taken.
It’s a smart, HMRC-approved way to grow your pot efficiently and in many cases, reduce your National Insurance (NI) and income tax. Below are some of the key benefits to salary sacrifice.
Take-home pay unaffected (lower Tax & NI)
Your contribution is taken before tax and National Insurance
This reduces your gross salary for NI, often lowering what you pay
Auto-enrolment contributions are after NI, so you still pay NI on that portion
Employer NI saving shared with you
Lancashire Renewables pays less NI when you use salary sacrifice
They share that saving by adding it into your pension as an extra top-up
Your pension pot can grow faster
Between your NI saving and the employer top-up, more money reaches your pension compared with auto-enrolment alone
Cleaner, predictable payroll deductions
Your pension contribution is made before it hits your payslip
Helps keep deductions tidy and easier to track for tax
Is salary sacrifice right for you?
Salary sacrifice can be a great option for many people, helping you make the most of your pay and benefits.
Everyone’s situation is a little different though, so it’s a good idea to get more information or chat with a financial adviser to make sure you are eligible and it’s the right fit for you.
Things to consider
Your official gross salary is lower which can affect mortgage applications, credit limits, or any benefits based on gross pay (like maternity pay or life cover)
You need to opt in whereas auto-enrolment happens automatically
How To Opt-In
If you would like to opt in to Salary Sacrifice, please confirm this with the Payroll team at Lancashire Renewables – payroll@lancashirerenewables.co.uk.
They will request an illustration for your information. Should you wish to proceed, a Salary Sacrifice Letter can then be signed, and the necessary arrangements will be made moving forward.
When salary sacrifice is usually worth it
For many people, salary sacrifice is a simple, tax-efficient way to boost pension savings without losing out day to day.
It tends to work best when your main income isn’t affected by state benefits and your employer passes on their NI savings, like Lancashire Renewables does.
You pay basic or higher-rate tax
You don’t rely on state benefits based on full gross salary
Your employer passes on their NI savings (Lancashire Renewables does this)
You want to maximise pension savings efficiently
FAQs
Will this hurt my mortgage chances?
Lenders look at your official gross salary. Because salary sacrifice lowers that figure, it can reduce the amount some lenders will offer. If you plan a mortgage soon, speak to a broker first.
Can I change my mind later?
Yes. You can usually vary or stop your sacrifice, but changes only take effect on payroll cut-offs. Ask Payroll for details.
Is this the same as auto-enrolment?
No. Auto-enrolment takes your contribution after NI. Salary sacrifice redirects pay before NI/tax, which makes it more efficient.
Who should I contact?
Email payroll@lancashirerenewables.co.uk to opt in or request an illustration.
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