Explore just how much a Salary Sacrifice vehicle can save you on your car bills each month by reading our case study.
An employee has just been informed by their employer that their business has implemented a Salary Sacrifice scheme with Salary Sacrifice Made Simple. They are keen to make use of their new employee benefit as they have been looking at switching to an Electric Vehicle for some time, specifically the Tesla Model 3. This employee earns £70,000 per year before tax. Here is their indicative Salary Sacrifice quote breakdown:
Indicative quote based upon an annual salary of £70,000 (40% tax bracket).
Tesla Model 3
Long Range 4WD Auto
List Price £50,990
CO2 Emissions 0g/km
Fuel Type Electric
Transmission Automatic
36 Month
Contract
Fully
Maintained
10,000
Miles P.A.
Tesla Model 3
Long Range 4WD Auto
£383.27
Potential Monthly Saving
with Salary Sacrifice
Price Breakdown
Every month you pay:
A monthly salary
deduction of: £1074.42
A company car tax
payment of: £33.99
Every month you make:
An income tax
saving of: £395.77
A National Insurance
saving of: £21.49
Cost Comparison
Personal Contract Hire
£1074.42
Per Month Inc. VAT
Salary Sacrifice
£691.15
Per Month Inc. VAT
Saving
£383.27
Per Month Inc. VAT
Terms and Conditions apply. Provided illustrative example is for this given circumstance. All tax and National Insurance (NI) calculations are indicative pricing for Salary Sacrifice and therefore savings are subject to change and dependent on, but not limited to, personal tax position, chosen vehicle, vehicle availability. Tax and National Insurance (NI) rates may be subject to change. This indicative quote assumes that the employer is unable to recover any of the VAT incurred, as the employer should seek their own tax advice. Please ask for further details or bespoke quotations.
Thanks to their employer’s Salary Sacrifice scheme, this employee was able to save the equivalent £383.27 each month on a brand-new, top specification Tesla Model 3 by making their car payments directly out of their income before they had to pay any tax. Comparatively, if they had taken out this vehicle on a Personal Contract Hire agreement, they would pay an additional £413.93 in income tax and National Insurance on their earnings before paying for their rental of £1074.42 every month.
