PruAdviser on-line services will be unavailable from 16:00 on Saturday 11 December until 12:30 on Sunday 12 December for website maintenance.
Currently we are not able to show some detailed information for Retirement Account performance for clients. This will be restored on 13 December 2021. We're sorry for any inconvenience this causes.

Redundancy Sacrifice Calculator

Redundancy sacrifice can provide a tax saving to the member for the employer to make a pension contribution on their behalf, should the employer pass on any of their National Insurance saving, this will increase the pension contribution at no extra cost.

  • See the effect on the tax liability of the member, plus full calculations
  • Assess the benefits of any employer saving passed on for the pension contribution.
  • See the effective “return” based on an assumed rate of taxation when the pension is taken by the member

Key features of our Redundancy Sacrifice calculator

Model a redundancy sacrifice scenario

The main advantage of redundancy sacrifice, is a tax saving to the member to make a pension contribution, should the employer pass on any of their National Insurance saving this will increase the pension contribution at no extra cost. Enter details of salary, personal (relief at source), the gross redundancy amount, the amount of any taxable redundancy to be sacrificed and any employer National Insurance to be passed on to calculate he pension contribution that will be made.

You can also calculate the effective “return” based on an assumed rate of taxation when the pension is taken by the member. This is calculated based on the reduction to take home pay against what can be taken assuming no growth, 25% taken as a pension commencement lump sum with the remainder based on the assumed rate of pension income taxation. 

Guidance, but not advice

The results of the tool are illustrative only and are in no way intended to be a recommendation for a particular course of action and do not constitute advice. The results are based on our current understanding of legislation and HMRC practice. But these might change without notice and the tool doesn’t take into account all of the possible circumstances that could impact your clients.

Learn more about sacrifice

Learn more about sacrifice and access a range of guidance from HMRC's Employment Income Manual And our article on salary sacrifice

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.