What Is Salary Sacrifice/Smart Pay?

In addition to personal contributions qualifying for tax relief (click here to see the “How are my contributions calculated” page), IMI also operates an HMRC-approved salary sacrifice arrangement.

Under the salary sacrifice arrangement, which IMI calls Smart Pay, you agree to “sacrifice” part of your basic pay equal in value to the pension contributions that you wish to pay to the RSP. The “sacrifice” reduces your basic earnings and in exchange for your agreement to this reduction IMI pays your pension contributions in addition to its own contributions.

Because your earnings have been reduced by the “sacrifice” not only do you benefit from the tax relief but you, and IMI, also pay lower National Insurance (NI) contributions.