Salary Sacrifice

The most cost-effective way to drive an electric car.

Save your employees up to 60% on the cost of leasing an electric vehicle with the Hippo Salary Sacrifice Scheme

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Overview

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.

Overview
What is salary sacrifice?
Salary Sacrifice
The Process

How does salary sacrifice work?

  • Start a Hippo salary sacrifice
    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.

  • Order and delivery
    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.

  • Make savings on both sides
    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.

Benefits

What are the advantages of a salary sacrifice?

Employee benefits include:

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    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.

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    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.

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    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.

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    Everything in one package

    The Hippo salary sacrifice offers true motoring peace of mind, with servicing, maintenance and roadside assistance all included.

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    Futureproofing

    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.

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    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.

Salary Sacrifice

Employer benefits include:

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    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.

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    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.

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    Sustainability targets

    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.

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    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.

Is it for me?

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.

Is it for me?
Who is a salary sacrifice ideal for?
Is it for me?
End of Contract

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.

End of Contract
What happens at the end of the agreement?
End of Contract
Scheme breakdown

Salary sacrifice example

Meet Angela.
Angela is a 32-year-old Marketing Manager from Glasgow.
Salary
£40,000
Term
36 months
Car
Tesla Model 2 Standard Plus
Annual Mileage
10,000
Angela's net sacrifice over the next 36 months:
£348 /per month
Includes:
Group 3 Angela’s net sacrifice over the next 36 months: Servicing Group 3 Angela’s net sacrifice over the next 36 months: Maintenance Group 3 Angela’s net sacrifice over the next 36 months: Roadside assistance
Tesla

Angela’s Hippo salary sacrifice breakdown
Tax year 2021/22

Gross sacrifice: £512
Saving: - £168 (Income Tax saving: - £93.29, NI saving: - £61.48)
Benefit-in-Kind (BiK): £5 (2021/22)
Net sacrifice: £348

BiK rates for Angela’s contract:

2021/22 BiK%: 1% BiK payment: £7 Net monthly sacrifice: £434.36
2022/23 BiK% : 2% BiK payment: £15 Net monthly sacrifice: £868.70
2023/24 BiK% : 2% BiK payment: £15 Net monthly sacrifice: £868.70
*Pricing accurate as of 30 June 2021 and averaged across three years; subject to eligibility and credit approval. Terms and conditions apply. Any prices quoted are subject to change and will be impacted by changes in law, regulation, tax or duty beyond our reasonable control. It assumes that the business can recover VAT and returns savings from their National Insurance Contributions due to the sacrifice back to the employee.
Support

Frequently Asked Questions

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Absolutely. A Hippo salary sacrifice is a great way to help you and your employees save while developing a more sustainable business model.
Your employees’ state pension is based on their National Insurance contributions record, and a salary sacrifice lowering the amount contributed may impact their state pension.
Yes, as the payment comes out of your employees’ salary, there are no personal credit checks. That means they can still take advantage of the scheme with bad credit.
It often depends on your company’s terms, but usually, an employee will still have to take home at least minimum wage – even after a salary sacrifice.
Each employee is different. Therefore, their savings will vary – but it can be up to 60% against the cost of a personal lease.
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