FAQ
How does salary sacrifice work?
Set up a sacrifice arrangement on the employee detail page. The engine reduces niable + taxable pay BEFORE PAYE/NI/pension calc, so the saving is automatic from the next pay run.
1 min readLast updated 25 May 2026
Salary sacrifice arrangements
Blankitt HR supports five sacrifice scheme types:
| Scheme | Use |
|---|---|
| Pension | Top-up employer pension contributions, NI savings to both employee + employer |
| Cycle to work | Bike scheme — typically 12-month sacrifice |
| Electric vehicle | EV salary-sacrifice lease, 2% BIK (FY26-27) |
| Holiday buy | Buying extra annual leave |
| Childcare voucher (legacy) | Pre-Oct-2018 closed scheme, still in payroll for grandfathered users |
How to set one up
- Open the employee detail page.
- Scroll to the Salary sacrifice panel on the Employment tab.
- Click Add arrangement.
- Pick the scheme type, effective from date, and amount (fixed amount per period or percentage of gross).
- Save.
The next time a pay run is calculated, the engine reads active arrangements overlapping the payment date and reduces the niable + taxable pay BEFORE PAYE, NI, and pension calculations run. The saved tax + NI shows up on the payslip as a smaller deductions total.
Overlap handling
If you add a new arrangement of the same scheme type for an employee, the previous arrangement is auto-closed (effective_to = day before the new effective_from). No double-deduction risk.