Transparency
How we calculate savings
Our methodology, worked examples and the evidence behind Halo Pay.
Methodology
How the calculator works
Halo Pay works by redirecting a portion of your gross salary to nursery fees before income tax and National Insurance are calculated. Our calculator models this gross-to-net change using current HMRC tax bands and employee NIC rates, and assumes the employer funding arrangement qualifies under the workplace nursery exemption (s318 ITEPA 2003).
Assumptions
Key assumptions
- 1
The participating employee has a signed Halo Pay agreement with their employer.
- 2
The employer’s payroll processes the Halo Pay arrangement for the relevant pay period.
- 3
Tax and NIC rates used are those in force as of April 2025. We update rates when HMRC publishes changes.
- 4
No other salary changes (e.g. bonus sacrifice, pension changes) materially affect the calculation.
- 5
The employer meets the conditions of the workplace nursery exemption (s318 ITEPA 2003).
- 6
Illustrative savings ranges are based on the worked examples below.
Example
Worked example
Inputs
Calculation
This is one example. Actual savings depend on salary, tax band and nursery costs.
Governance
Independent review
An independent review of Halo's structure under the workplace nursery exemption has been completed by a qualified tax advisory firm (January 2026). The review considered all four conditions of s318 ITEPA 2003 including the partnership requirements for financing and management. Documentation is available on request — contact compliance@halobenefits.co.uk.
Records
Documentation we hold
- Dated independent tax opinion on the Halo Pay structure
- Calculator methodology and archived sample calculations
- Employer onboarding and governance documentation
- Management committee records and minutes
- Payroll records retention policy
For further information or to request documentation, email compliance@halobenefits.co.uk.