Significant Cost Reduction
Not only will a Salary Sacrifice vehicle allow you to save on your monthly car payments, your National Insurance, and your income tax; but going electric means you’ll also save money on fuel and congestion charges. To learn more about how check out our case study.
Simple & Easy
Let us take the stress out of setting up a Salary Sacrifice scheme for you. One of our Salary Sacrifice experts will handle all of the paperwork while you decide what car you want. Salary Sacrifice schemes mean no up-front leasing costs and since the finance agreement is arranged with your employer, there are personal credit checks; and, as always, we never charge our customers any hidden fees.
Reduce Your Carbon Footprint
Save the planet whilst you’re saving money by switching to an EV on a Salary Sacrifice scheme. By making the switch to an electric car, you can significantly cut down on your carbon emissions and help minimise the ever-growing negative impact of personal transportation on the environment.
A Brand-new Car Every Few Years
Choose a brand-new car every few years from our wealth of vehicle options, with free reign to select the colour, specifications and additional options of your choice (N.B. Factory Order vehicles will entail longer lead times). Whether you’ve been eyeing up an Audi e-tron or itching to get behind the wheel of a Tesla, we’ve got you covered.
Why not enquire now and recommend a Salary Sacrifice scheme to your employer?
Here are some answers to questions Employees frequently ask about salary sacrifice:
How does BIK (Benefit In Kind) tax work again?
HMRC has to calculate a value for all taxable benefits so they can determine the amount of tax that is due to be charged. In order to calculate the company car tax to be paid, they multiply the car’s P11D value (list price including optional extras and VAT) by its BIK tax rate and your personal tax bracket (20%, 40% or 45%).
In an effort to reduce carbon emissions and promote the use of electric vehicles the government has capped the BIK tax rate on these vehicles to 2% until April 2025, increasing thereafter by 1% per annum for at least 3 years (BIK rate on electric vehicles in 2028 will be 5%). This means that electric vehicles are significantly more attractive as company cars, as drivers have to pay a much lower company car tax bill on them than they would on traditional combustion engine vehicles (BIK rates of up to 37% in 2022 with no fixed cap for future financial years).
Does it really make a big difference to make car payments before tax?
Yes, it does. Since your car payments come directly out of your wages, not only do you pay less National Insurance and income tax as a result, but it could potentially even lower your tax bracket. Were you to lease this kind of vehicle yourself on a personal contract hire, you would have to pay full tax on your income and then the monthly rentals, which would leave you with comparatively less money in your pocket every payday.
How do I pay for my company car tax?
Most employers will deduct this for you at source, so you won’t need to worry about it at all. If this is not the case, HMRC will need to be notified that you are using this employee benefit. This information should be disclosed by your employer to HMRC in the P46 (Car) form, but it is your responsibility as the driver to ensure HMRC are informed of any changes so make sure to check.
Who owns the car? Whose name is the contract in?
Throughout the duration of the contract, neither yourself nor the employer owns the car- instead you are borrowing it from the finance lender. They are the registered keeper of the vehicle, which you must return at the end of your agreement in good condition and having kept under the agreed annual mileage as not to incur any charges.