Salary Sacrifice
What is a Salary Sacrifice Car Scheme?
A Salary Sacrifice scheme is an employee benefit scheme, in which employees do not pay National Insurance or Income Tax on the portion of their salary that they sacrifice for a car. They will incur Benefit in Kind tax on the vehicle, which is why the scheme is best suited to electric vehicles which, due to their low or zero CO2 figures, have a low taxation percentage.
This deduction for the car is taken from an employee's gross salary, making it a tax efficient way to lease a brand-new, fully-maintained car.
Benefits of going electric
- Electric Vehicles are considered environmentally friendly
- Typically, EV's have lower maintenance costs
- They comply with the current Low, Ultra-Low and Zero Emission Zones (LEZ, ULEZ & ZEZ)
- EVs offer a smoother driving experience
- Typically, EV's have lower running costs
Benefits for Employers
- No set up fees or ongoing costs
- No minimum employee number
- Reduced national insurance contributions
- Completely web based, so offers reduced administration
- Dedicated Account Manager
- Reduce your organisations carbon footprint
- Aids staff retention
Benefits for Employees
- No credit checks
- Fixed insurance premium for the duration of the agreement
- No initial payment required
- Road tax (if applicable)
- Servicing and warranty repairs
- Breakdown cover
- Tyres (replacement and repair)
- Wipers
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