Case study

Making the most of salary sacrifice through a SSAS

 

One of the few ways of reducing your taxable income, thus paying less tax and keeping more of your money, is via salary sacrifice into your pension scheme. If you are a 40% tax payer, by electing to pay, for example, £20,000 of your salary directly to your SSAS via salary sacrifice you stand to save £8,000 in tax. Using a SSAS the extra £20,000 can be invested in far more diverse ways than via other pension schemes.