What is salary sacrifice?
Salary sacrifice is an employee scheme that enables people to exchange part of their gross (before tax) salary for a non-cash benefit, such as a bike, season ticket or brand-new electric car. To access these schemes. businesses need to partner with a specialist provider, such as Hippo.
The savings for both employee and employer can be significant. Thanks to government tax incentives, leasing a brand-new electric vehicle in this way can save the driver up to 60% compared to a personal lease.
Easy to set up and run, the Hippo Salary Sacrifice Scheme will give your employees a wide range of electric vehicles to choose from, including from brands like Tesla, Polestar, VW, Nissan and Mercedes.
How does salary sacrifice work?
- 1/ Start a Hippo salary sacrifice
Speak to a member of our team who’ll explain everything you need to know and guide you through the paperwork.
- 2/ Order and delivery
Once everything is agreed upon, your employees can order their vehicles and we’ll deliver them directly to your business address.
- 3/ Make savings on both sides
Then, the good part, it’s time for your employees to enjoy their new vehicles and for you both to make your savings.
What are the advantages of a salary sacrifice?
Employee benefits include:
Huge Potential savings
As a Hippo salary sacrifice is taken before Income Tax or National Insurance, your employees can save up to 60% against the cost of a personal lease.
No upfront costs or credit check
With a salary sacrifice, your employees face no upfront costs or credit checks, meaning everyone has access to the same huge range of electric vehicles.
Wide selection of vehicles
Through a Hippo salary sacrifice, your employees have access to a wide selection of electric vehicles, ranging from the Corsa-e to the Tesla Model 3 and Peugeot Partner Electric van.
Everything in one package
The Hippo salary sacrifice offers true motoring peace of mind, with servicing, maintenance and roadside assistance all included.
Your employees can prepare for the future with an electric vehicle, as well as take advantage of congestion charge exemption and zero road tax right now.
Low Benefit-in-Kind (BiK) rates
As it’s an electric vehicle, your employees can take advantage of great company car tax rates, with BiK at 1% for 21/22 and 2% for 22/25.
Employer benefits include:
Huge Potential savings
As the salary sacrifice is taken directly from your employees’ salary, it lowers the amount the business has to pay in National Insurance and pension contributions.
Dedicated team to handle the paperwork
Here at Hippo, we’ll handle all the paperwork for you, so it means you can save, give your employees a great benefit and remain focused on your business.
Sustainability is becoming a priority for many businesses. And through a Hippo salary sacrifice, you can help contribute towards that through a wide selection of electric vehicles.
A great benefit to advertise
You want your company to stand out from the rest? Being able to offer potential employees a huge range of electric vehicles while saving them thousands is a show-stopping benefit.
Who is a salary sacrifice ideal for?
Salary sacrifice is ideal for both employers and employees. It gives your business the chance to offer a great employee benefit while helping you save. We’ll take care of all the paperwork and are on hand to offer impartial expert advice, ensuring your employees are well looked after.
It also allows your employees to save thousands on a brand-new electric vehicle. And with there being no upfront fees or credit checks, a Hippo salary sacrifice is available to everyone.
What happens at the end of the agreement?
At the end of a Hippo salary sacrifice, it’s the same process as a business or personal contract hire.
Your employee simply hands their vehicle back and is free to move on to their next one. There are no extra charges to worry about - as long as the terms of the contract have been upheld - and no worry on your side about what you’re going to do with the vehicle - as there might be with a finance lease.
Salary sacrifice example
£348 /per month
Servicing Maintenance Roadside assistance
Angela’s Hippo salary sacrifice breakdown
Tax year 2021/22
BiK rates for Angela’s contract:
Frequently Asked QuestionsView more FAQs
Is a salary sacrifice worth it?
Will salary sacrifice affect your employees’ state pension?
Can an employee salary sacrifice with bad credit?
How much salary can your employees sacrifice?
How much will salary sacrifice save?
Interested? Join the scheme today!
Fill out the form and we’ll give you a call to discuss how you can join the EV revolution with Hippo