What is a Salary Sacrifice Car Scheme?
Car salary sacrifice is a workplace benefit where you agree to give up a portion of your gross salary in return for a brand-new car.
Because the deduction happens before tax and National Insurance, the overall cost is usually lower than paying for the same vehicle privately.
The car is supplied on a lease, so you don’t own it, but you get predictable monthly costs, and typically everything is bundled in — maintenance, servicing, breakdown cover, tyres and insurance.
You simply choose a car, agree on the contract length and mileage, and the deduction comes straight from payroll. For many employees, it’s an easy, cost-effective way to drive a new car without the usual financial admin, and employers benefit too by enhancing their benefits package and potentially reducing National Insurance costs.
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 organisation's carbon footprint
- Aids staff retention
Salary Sacrifice Employer Guide
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
Get in touch
Employee portal registration
