Salary Sacrifice
Salary Sacrifice is a smart, tax-efficient way for employees to exchange part of their salary for a brand-new company car.
By sacrificing a portion of their gross salary, you are able to supply them a brand new car in a very cost effective way, by making savings on Income Tax and Nation Insurance it is much more competitive than a personal lease.
Please get in touch to arrange a call or teams meeting.
You will have lots of questions and we're here to help!
Are you an employer?
In a nutshell...
Salary sacrifice helps your staff access brand new cars in the most cost effective manner, this helps retain staff and keep them happy.
Who does this work for?
- People with no access to a company car.
- People who receive a car allowance, this will be more cost effective than a Personal Lease.
- Company car drivers who need a 2nd car for their household.
As an employer you will also make VAT and NI savings, in most cases as a business implementing Sal Sac actually saves you money!
Are you an employee?
In a nutshell...
Salary sacrifice gives you the chance to drive a brand-new leased car whilst saving money! By exchanging part of your salary for a vehicle, with a contract ranging from 24 to 48 months, you can enjoy all the perks of a new car for less.
Though you’ll pay Benefit in Kind (BIK) tax, the scheme still offers big savings. Since the salary deduction comes from your gross pay (before tax and National Insurance), it’s more cost-effective than leasing a car on your own.
How much could I save with salary sacrifice?
You could save between 30-60% on the monthly lease cost of an electric car! The exact savings depend on your salary, tax bracket, and the Benefit in Kind (BiK) tax rate.
Good news: The UK Government set the EV BiK rate at just 2% until 2025, rising by only 1% per year until 2028. Compare that to petrol and diesel cars, which face rates up to 37%!
Switch to electric and keep more money in your pocket.
What is included in the monthly cost?
Your fixed monthly payment covers not only the car but everything else required to keep you mobile. Tyres, servicing, routine maintenance and breakdown cover.
You can then choose to also include the below.
- Fully comprehensive insurance for you and up to 2 named drivers.
- Fully installed home charger.
Speak to the team and we will discuss and send you a bespoke quotation.
Why it’s beneficial for you and your employer:
Suggesting the benefit to your employer may feel daunting, but in reality it’s an easy pitch. Here are the headlines they’ll be more than happy to hear:
- Completely cost-neutral for employer
- Offer current and prospective employees an effective pay rise
- Improve green credentials without spending a penny
- New and used options available
- Implement the best employee benefit, choose the best provider
A smarter, greener, and cost-effective choice for everyone!
What’s the catch?
No catch, we just need your employer on board.
Your employer leases the car on your behalf. Each month, you then pay for the lease using a proportion of your gross salary.
Because it’s an employee benefit, you’re only able to access salary sacrifice via your workplace. However, it’s completely cost-neutral for your company to implement and it benefits them, too.
Below are a couple of guides that you can download, they give you a high level overview of the benefits and process.
whether you're an employee looking to approach your company to set-up or a employer looking to see the benefits of offering Salary Sacrifice to your staff.
Hopefully, you can now see the benefits of Salary Sacrifice, whether you are an employee or the employer. If there's still something you're not quite sure on, don't hesitate to contact one of team. We're more than happy to help!