Bonus Sacrifice – How to save tax

If you’ve ever made a bonus and seen how much income tax you’ve paid then it’s highly likely you’ll have wanted to reduce your tax burden. One way of becoming tax efficient is by making additional pension contributions through bonus sacrifice.

Bonus sacrifice refers to the practice of paying your bonus into your pension fund instead of your bank account. You will save a lot of money on tax and national insurance as well as making significant pension contributions.