It’s a benefit where you give up part of your gross salary in exchange for a brand-new car. The payment comes out before tax, so you usually pay less overall.
Because you sacrifice salary before income tax and National Insurance, you save on both. You do pay Benefit-in-Kind tax on the car, but for EVs this is very low.
Usually, any employee on PAYE who earns enough to cover the reduction in salary without falling below the minimum wage. Employers may set extra criteria.
Typically, the lease, maintenance, servicing, tyres, breakdown cover, and insurance are included. Exact inclusions vary by provider.
No. It’s a long-term lease. At the end, you hand it back, extend the agreement, or start a new one, depending on the provider’s rules.
Yes, but early termination fees can be expensive. Some employers include protection for resignation, redundancy, sickness or parental leave, but it depends on the policy.
The car usually has to be returned. If your employer has early-termination protection, this may soften or remove the penalty.
Most schemes have a wide choice, but models, mileage limits and optional extras are controlled by the provider.
You pick an annual mileage at the start. If you go over, you’ll pay excess-mileage charges when the car is returned.
It can, because your taxable salary is reduced. Pension contributions, overtime rates, or life-cover multiples may be based on your post-sacrifice salary. Employers sometimes calculate benefits on the original salary to avoid issues, but check with your HR team before enrolling in the scheme.
