Consider the following examples (numbers were calculated from tax.service.gov.uk).
Annual salary: £20000 Income tax: £1498 National insurance: £1260 Total tax: £2758
Annual salary: £60000 Income tax: £11498 National insurance: £5060 Total tax: £16558
Do these mean that if I draw a salary of £60000 I would end up saving in taxes £16558 - £2758 = £13800 if I have the employer contribute £40000 to a pension scheme instead of paying me directly?
What is the difference between such an employer contribution and a salary sacrifice? Also, do I have to contribute the entire £40000 from my salary or does the employer contribute a part of it?