Moore Kingston Smith has established an exclusive partnership with Husky.
Moore Kingston Smith understands that you have not been taking advantage of the Salary Exchange in relation to your pension scheme. You may not even be aware of what Salary Exchange is or what benefits it could bring to both you as the employer as well as your employees. To make it easy for you, Moore Kingston Smith has partnered with Husky Workplace Pensions, (a leading pension technology company with 1700+ satisfied employers). Husky handles all the setup and management of your Salary Exchange scheme.
Here is the deal:
- Our partnership covers all fees relating to the setup and management of the scheme, at no cost to you. The best part is, the savings pay. If you make no savings there are no costs.
- Husky will guide you, answer any questions, and liaise directly with MKS to configure your payroll.
- All you need to do is to register and follow the very easy steps below.
Why setting up Salary Exchange is so crucial?
It allows you and your employees to save on National Insurance contributions, putting more money in their pockets each month and increasing cash savings for your business.
Register now. Limited time offer!
With coupon code MKSSUMMER23 for FREE services.
Follow the very easy steps below to get started
Register now. Limited time offer!
With coupon code MKSSUMMER23 for FREE services.
More benefits
Simplified
Implementation
We handle the setup, guidance, and management of your Salary Exchange scheme in partnership with Moore Kingston Smith (MKS). No cost to you.
Reduced
tax and NICs
This cost-effective agreement reduces the employee’s annual salary. Income tax and NICs are then calculated on lower earnings, allowing you and your staff to keep more and save more.
Stay
Compliant
We help you stay fully compliant with real-time data audits, preventing potential fines.
Increased
employee satisfaction
Salary Exchange is a zero-cost employee benefit. It increases employee satisfaction and retention. They get more money.
Salary exchange calculator
See how implementing salary exchange can positively benefit your company and workers.
Discover John and his employer's real-life savings journey
With the switch to salary exchange:
- You get up to £198 savings on employer’s National Insurance and up to £273 on corporation tax
- John gets up to £173 more in his take-home pay and up to £198 more in his pension pot (depending if you as the employer, re-invest all or part of the above NI savings into the employee’s pot)
Default | After Exchange | Saved | |
|---|---|---|---|
Gross Salary | 35,000 | 33,562 | |
Income tax | -4,486 | -4,198 | |
Employee NIC | -2,692 | -2,519 | |
Take-home net pay | 26,672 | 26,844 | 173 |
Employer NIC | 3,574 | 3,376 | 198 |
Employee Pension Contribution | 1,438 | ||
Employer Pension Contribution | 862 | 2,300 | |
Total Pension contribution | 2,300 | 2,300 |
Husky has a dedicated customer support team
- We will set everything up for you and start administering the whole process.
- We are real humans (we don't use bots) for help anytime via Email and Phone.
See why employers
choose Husky.
Award-winning solution
Here are 7 frequently asked questions about Salary Exchange
If you have more questions you can always access our knowledge base on this link.
As the employee’s gross earnings are reduced, the employer also saves on their National Insurance Contributions (NIC).
Those savings can be re-invested into the employee’s workplace pension pot to provide an even better employee benefit and encourage them to join. With Husky, you can also split those savings into specific %s so you can share the savings between the company and the employee.
Salary Exchange is an agreement between the employee and the employer. The employee's contract of employment is altered to reflect that they have agreed to exchange part of their future gross salary or bonus entitlement in return for a non-cash benefit, such as an employer pension contribution.
What are the benefits of a Salary Exchange scheme?
- Employers save on NI contributions while employees can save on tax as well as NI contributions.
- Employers can reinvest any NIC savings in their business or their employees’ pension plans.
- Employees receive a higher pension contribution or take-home pay, depending on how the arrangement’s set up.
- Employees can benefit from a bigger retirement fund, if NIC savings are reinvested back into their plan.
Are there any possible drawbacks to a Salary Exchange scheme?
- Lower life cover (employers generally calculate entitlement as a multiple of salary which would be lower)
- Lower borrowing available on mortgages (as per life cover the borrowing level is determined by a multiple of a lower salary)
- Entitlement to state benefits eg Statutory Maternity Pay and the State Pension may be affected if your salary falls below the level at which you pay National Insurance contributions.
- The employee might not be able to revert to their old (pre-sacrifice) salary if personal circumstances change. The employer would have to agree to a further change to the employee's contract of employment.
Those savings can be re-invested into the employee’s workplace pension pot to provide an even better employee benefit and encourage them to join. With Husky, you can also split those savings into specific %s so you can share the savings between the company and the employee.
A salary exchange agreement can normally be altered, for example, if someone opts out of an automatic enrolment scheme with salary exchange.
For any other circumstances, it depends on how the agreement has been set up. It may be necessary to change the terms of a salary sacrifice arrangement where a lifestyle change significantly alters an employee’s financial circumstances.
This may include:
- changes to circumstances directly arising as a result of coronavirus (COVID-19)
- marriage
- divorce
- partner becoming redundant or pregnant
What are the benefits of a Salary Exchange scheme?
- Employers save on NI contributions while employees can save on tax as well as NI contributions.
- Employers can reinvest any NIC savings in their business or their employees’ pension plans.
- Employees receive a higher pension contribution or take-home pay, depending on how the arrangement’s set up.
- Employees can benefit from a bigger retirement fund, if NIC savings are reinvested back into their plan.
Are there any possible drawbacks to a Salary Exchange scheme?
- Lower life cover (employers generally calculate entitlement as a multiple of salary which would be lower)
- Lower borrowing available on mortgages (as per life cover the borrowing level is determined by a multiple of a lower salary)
- Entitlement to state benefits eg Statutory Maternity Pay and the State Pension may be affected if your salary falls below the level at which you pay National Insurance contributions.
- The employee might not be able to revert to their old (pre-sacrifice) salary if personal circumstances change. The employer would have to agree to a further change to the employee's contract of employment.
Those savings can be re-invested into the employee’s workplace pension pot to provide an even better employee benefit and encourage them to join. With Husky, you can also split those savings into specific %s so you can share the savings between the company and the employee.
You should speak to your tax credits office before you decide whether to participate in a Salary Exchange Scheme. You must also notify your tax credits office once you have exchanged your salary.
However, in broad terms, as your gross salary reduces (and employer pension contributions are disregarded) your entitlement to tax credits may increase. If you currently make personal contributions to a pension scheme, then you are currently entitled to deduct the gross amount of the pension contribution from your earnings to calculate your tax credits. In this situation, therefore, there should be little or no change to your tax credits entitlement.
Yes, salary exchange can be introduced into an existing plan as well as new plans.
Joining salary exchange is an employee’s choice and therefore an employee can not be forced to opt into a salary exchange (salary sacrifice) scheme.
Using salary exchange together with Auto-Enrolment means that if someone hasn’t signed the agreement they still need to be enrolled and therefore make their contributions as currently.
As an employer, you can have two sets of employees: one set in the scheme without Salary Exchange and contributing normally and the second in the scheme with Salary Exchange where the contributions are all made from the employer.
Some employers automatically include new employees in salary exchange (through their contract of employment) while allowing them to opt out of Salary Exchange if they wish.
Leaving a salary sacrifice exchange is always an option, and you should be able to do so without penalty if the arrangement isn’t working for you.
Your employer may have rules around when you can do this based on your salary exchange agreement, however they can’t make you stay in one. Your employer also cannot force you to enter into one.