Special Offers
Salary sacrifice cars: drive an electric or hybrid car for less
The ultimate employee benefit, our salary sacrifice scheme can save you and your employees up to 60% off the cost of leasing an electric or hybrid vehicle. Fully taken care of by us – at zero cost to you.
“Quickly and efficiently understood my needs and provided tailored solutions. Easy process, no hard sell.”
Already a salary sacrifice customer? Log in here
What is salary sacrifice?
Salary sacrifice is an employee benefit that allows staff to lease a hybrid or electric car through the business using their pre-tax salary. Paying for the lease pre-tax means paying less tax overall, which makes the lease cheaper. It’s the most cost-effective way to lease a new car and offers a whole host of benefits for both employers and employees.
What’s included?
Breakdown and roadside assistance
Vehicle insurance
No personal credit check
Maintenance, tyres and servicing
No deposit
Early termination protection
Breakdown and roadside assistance
Vehicle insurance
No personal credit check
Maintenance, tyres and servicing
No deposit
Early termination protection
What are the benefits of driving electric?
Better economy. Lower running costs. Outstanding performance. Greener driving. There are plenty of reasons to go electric or hybrid with your next car. With affordable EV leasing on offer through our salary sacrifice scheme, the real question is: what’s stopping you?
Salary Sacrifice Examples
Salary sacrifice example.
Meet Angela.
Angela is a 40% taxpayer with a gross annual salary of £80,000.
Salary
£80,000
Term
36 months
Car
Tesla Model 3 Standard Plus
Annual Mileage
10,000
Angela's net sacrifice over the next 36 months: £591 / per month
- Includes
- servicing
- maintenance
- roadside assistance
Angela’s Hippo salary sacrifice breakdown Tax year 2023/24
| Gross monthly sacrifice: £996.45 |
| Income tax: £397.41 |
| National Insurance: £21.41 |
| Benefit in Kind (Company car tax): £36.81 |
| Monthly net sacrifice: £591.11 |
Estimated monthly savings: £387.91
Salary sacrifice example.
Meet Jake.
Jake is a 20% taxpayer with a gross annual salary of £35,000.
Salary
£35,000
Term
36 months
Car
Toyota BZ4X
Annual Mileage
10,000
Jake's net sacrifice over the next 36 months: £321 / per month
- Includes
- servicing
- maintenance
- roadside assistance
Jake's Hippo salary sacrifice breakdown Tax year 2023/24
| Gross monthly sacrifice: £471.92 |
| Income tax: £95.39 |
| National Insurance: £57.24 |
| Benefit in Kind (Company car tax): £10.81 |
| Monthly net sacrifice: £321.91 |
Estimated monthly savings: £141.82
New Car 
Electric 
Charge - 6 hrs 
Range - 350miles 
Auto How does salary sacrifice work?
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Book in a call with us today and register your business for salary sacrifice.
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Once your scheme is up and running, your employees can choose from a huge range of brand-new cars.
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You and your employees can save up to 60% with a salary sacrifice lease versus a standard PCH deal.
What are the benefits of a salary sacrifice?
Employee benefits include:
- Save up to 60% off your new lease
Because your lease payment is taken before income tax or national insurance, you can make massive savings against the cost of a standard personal lease. - Insurance, breakdown and maintenance cover included
Fully comprehensive insurance, breakdown and roadside assistance, and maintenance, tyres and servicing are all included for the entirety of your lease. - Fixed cost benefits
All your costs are fixed in one transparent monthly rate, so you’ll never need to worry about being caught out by high EV insurance premiums or costly maintenance bills. - No upfront costs or credit checks
There are no upfront costs or credit checks to worry about with a salary sacrifice lease, meaning everyone has access to the same incredible range of electric and hybrid vehicles. - Huge selection of brand-new vehicles
Choose your lease from our extensive EV and hybrid range, with options like the Tesla Model 3, Kia Niro EV and Cupra Formentor e-HYBRID all available on discounted deals. - Early termination protection
We offer risk mitigation cover with all our salary sacrifice leases as standard, so both you and your employer are protected from the full cost of your lease if you move on. - Green benefits
Drive with a greener footprint and benefit from incentives like congestion charge exemption, zero road tax and low benefit-in-kind (BiK) rates. Home charging packages are also available for EV leases. - We take care of everything
Everything you see above is taken care of as part of your lease. Our salary sacrifice scheme provides you with everything you need in one package, fully outsourced to us.
Employer benefits include:
- Huge potential savings
Like your employees, you can save money through a salary sacrifice scheme via lower national insurance, tax and pension contributions. - Boost employee satisfaction, retention and attraction
Salary sacrifice is a hugely desirable perk to add to your employee benefits package and a great way to both retain and attract exceptional talent to your business. It’s a benefit for all, and it won’t cost you a penny. - Minimal risk
With early termination cover included as standard with all our leases, you can offer salary sacrifice safe in the knowledge that it will be, at a bare minimum, cost neutral – if not cost beneficial – to you. - Get your own lease, too
Your salary sacrifice scheme is open to you, too, so if you want to get your own affordable lease through the business, you can. - Gain a greener profile
Building an electric/hybrid fleet can help achieve your CSR and sustainability goals, boost employee satisfaction and improve brand perception. - Support or replace your traditional fleet
Salary sacrifice can supplement or replace your traditional fleet infrastructure, as well as reduce the safety and cost risks of ‘grey fleet’ employees. - Completely outsourced to us
We take care of your entire salary sacrifice scheme for you, so you can stay focused on what matters in your business.
FAQs
What happens if an employee leaves the business before the end of their lease?
We provide early termination cover as standard with all of our salary sacrifice leases, which limits the risk for both employers and employees. Essentially, whichever side of the lease you’re on, you’ll be protected from the total cost of the lease if it’s terminated early.
Is a salary sacrifice scheme worth it?
Absolutely. The great thing about salary sacrifice is it’s hugely beneficial for both sides of the agreement. Employers get an unbelievable benefit to offer staff on a cost saving/neutral basis, and employees get the chance to save big on a hybrid or electric lease. Plus, there are a bunch of other great benefits to consider for both parties, too.
Will salary sacrifice affect your employees’ state pensions?
Because salary sacrifice typically lowers tax and national insurance contributions, it may affect an employee’s entitlement to state pension alongside other contribution benefits.
Can an employee salary sacrifice with bad credit?
Yes. As the lease payment comes out of pre-tax salary, no personal credit check is necessary. That means all employees can take advantage of the scheme, regardless of their credit rating.
How much salary can an employee sacrifice?
It often depends on company terms, but usually, an employee will still have to take home at least a minimum wage – even after a salary sacrifice.
Not found the answer you’re looking for? Take a look at our complete list of salary sacrifice FAQs
