Moore Kingston Smith has established an exclusive partnership with Husky for Salary Exchange.

Boost staff take-home pay whilst paying less National Insurance. With Salary Exchange, you can put more cash in your employees’ pocket each month, potentially more funds in their pension pot and more cash left in your business to spend as you please.

However, the implementation and monthly administration might be complex. That’s why Moore Kingston Smith (MKS) has partnered with Husky, the workplace pensions specialist that make the Salary Exchange process easy through automation.

We unlock the benefits
of Salary Exchange

We discovered that over 95% of small businesses are not benefiting from the Salary Exchange scheme. We handle the setup and management for you, so you don’t miss out on this valuable benefit.

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.

In short, everyone wins.

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See how implementing salary exchange can positively benefit your company and workers

Advantages for Employers

Less hassle cost for you

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Tax Savings

Employers can save on National Insurance contributions, reducing overall tax expenses. Better cash flow for the company, more resources for strategic investments.

Simplicity in Administration

Easier for HR to manage benefits, reducing administrative burdens.

Money in your employees' pockets

Reduce income tax and NICs, resulting in higher NET pay. You save more, employees get more.

Attracting Talent

It increases employee satisfaction and makes the company more attractive to potential hires.

Talk to our dedicated customer support team.

See why employers
choose Husky.

"I have been working closely with Husky for the past 5 years, not only because they were a member of Innovate Finance but also because we are a Husky client. We have been very impressed with Husky, from their innovative technology and great UX to implementing tax benefits that we were not even aware of, like Salary Exchange, so that our staff get more on their NET pay and on their pension.  They offer an end-to-end workplace pension service that's extremely helpful to any small SME looking for help on Auto-Enrolment and to scale-ups like us, who are looking to ensure pension compliance and at the same time make pensions a stand-up employee benefit."

Janine Hirt | CEO, Innovate Finance
"Larger companies have real challenges meeting their employees’ demand for responsible and sustainable investments. Husky is a great answer to this challenge, enabling firms to maintain compliance whilst putting choice in the individual’s hands."

John Ditchfield | Head of Responsible Investment, Helm Godfrey
"Auto-enrolment has been one of the biggest changes in the workplace for many years, and is aimed at ensuring more employees are saving for retirement and have a pension. The Husky partnership provides a perfect solution for our clients, enabling them to set up a scheme that is not just compliant, but affordable and the right fit for their business and staff."

Val Buzzard | Director of Whitley Stimpson
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Our Achievements

80%

savings on pension fees with Husky’s exclusive preferential rates.

2000+

businesses have saved money, streamlined admin and ensured compliance with Husky.

10000+

individuals have more control over retirement planning because their employers use Husky.

£50,000+

We successfully resolved compliance issues for our clients, resulting in over £50,000 in fines avoided.

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.

See how we implement Salary Exchange for you

4 easy steps

Register

To access Salary Exchange services with Husky, it is currently required that we manage your Workplace pension. Once you sign up for Workplace pension management, you will be able to activate Salary Exchange.

Learn

Your employees understand the benefits of this scheme by using the Husky for Everyone app

Onboarding

You accept the agreement and sign the necessary documents that have been prepared for you by Husky, with a press of a button. The employee signs the agreement through the app too.

That's it

You’re all set, start saving! Salary Sacrifice helps you and your employees get more now and have more later.

Award-winning solution

5/5
Best-Workplace-Pension-Compliance-Solution

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