Three in 10 (30%) DIY investors have said they would opt in to use salary sacrifice schemes, Charles Stanley Direct has found.

It comes after the Chancellor, Rachel Reeves, increased employer national insurance contributions to 15% in the Budget last autumn, prompting interest from employers into salary sacrifice schemes on the potential of tax changes.

The firm’s survey of 1,000 UK DIY investors revealed that 29% said they currently use salary sacrifice schemes offered by their employer.

Of those who do not, 30% of respondents said they would consider salary sacrifice and 20% said their employer already offers salary sacrifice, and although they don’t use it currently, they will. A further 10% said their employer does not currently offer salary sacrifice but they would use it if it was introduced.

Charles Stanley revealed that of those who currently use or plan to use salary sacrifice, 51% said they use it, or will use it, to boost their pension pot for retirement.

A third (33%) said they will use it or will use it to pay less national insurance, while 29% added that they would use salary sacrifice to put them into a lower income tax bracket.

Financial planner at Charles Stanley, Lisa Caplan, said: "Following the Chancellor’s decision to raise employer contributions to national insurance, the attraction of salary sacrifice has grown markedly.

"It gives employees the chance to bolster their pension savings while reducing tax liabilities, which employers also benefit from. With 15% of those surveyed saying their employers don’t offer salary sacrifice, there’s a chance that many businesses may be missing a trick.

"With DIY investors known for making their own financial decisions in their personal interests, it’s telling that so many use or plan to use salary sacrifice. While it may be a good option for many, it’s important to note that taking salary sacrifice is a decision to be made following close consideration of personal circumstances."

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