What is salary sacrifice?

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.

How does salary sacrifice work?

Salary sacrifice is a tax-efficient, non-cash employee benefit scheme provided by an employer. Through a salary sacrifice scheme, you can lease a brand-new electric or hybrid vehicle by sacrificing part of your gross (before income tax and National Insurance deductions) salary.

Salary sacrifice is a mutually beneficial scheme. If you’re an employee leasing through it, you’ll save on tax and NI and can knock up to 60% off the cost of a standard lease deal. You’ll also get everything you need to get on the road as part of your lease. Insurance, maintenance, tyres and breakdown cover are all included as standard in your fixed monthly price.

If you’re an employer offering it, it’s a cost-neutral (or even cost-beneficial) way to offer a brilliant employee benefit that’ll help you attract and retain talent, lower your NI contributions and boost your green profile. Plus, you can get your own lease deal, too.

What’s more, we take care of all the paperwork for you, and there’s early termination protection included for both sides, which means minimal risk for everyone.

Leasing, but cheaper?

Is salary sacrifice worth it? Once you see the cost savings and convenience versus a standard
personal contract hire (PCH) deal, you’ll see why it’s so popular.

What’s included? Salary sacrifice Personal lease
Car Up to 60% off vs standard price Standard price
Insurance
Maintenance
Breakdown cover
Tyres
Early termination protection
Fuel Standard price Standard price

Save big with fixed-cost motoring

Don’t underestimate the benefit of a fixed-cost lease deal with salary sacrifice. In a world where EV insurance premiums are skyrocketing and maintenance costs can catch you by surprise, you’ll have all your on-road essentials covered for a single monthly price that won’t change for the duration of your lease.

How much can salary sacrifice save you? The average driver will save thousands per year on their lease deal versus the cost of a standard personal lease. Some can save as much as 60% off an equivalent PCH deal.

So, that’s all your essentials covered in a single, simpler, cheaper package – all taken care of by us. What’s not to like?

 Coming soon – find out what you could save with our salary sacrifice calculator

FAQs

In theory, yes, but for a salary sacrifice deal to be cost-effective, you’ll probably need to lease an electric or hybrid car. This is because EVs carry the least amount of benefit-in-kind (BIK) tax thanks to producing zero or low emissions. You could look at a low-emission petrol or diesel (ICE) vehicle, but you’ll struggle to find an ICE option that offers you those great savings we’re talking about above.

Leasing used through salary sacrifice, particularly with electric cars, is a more complicated and often less cost-effective process than you might think. If you’re wondering about this, give us a call and we’ll talk you through the technicalities.

We offer early termination protection for both employer and employee in the event the employee leaves the business before the end of the lease, therefore foregoing their agreement. That means whichever side of the deal you’re on, you’ll be protected from the total cost of the deal.

You can name up to three drivers on the insurance policy included with your salary sacrifice lease, subject to all drivers meeting eligibility.

Tyre replacement, including punctures and sidewall damage, is included as part of your deal. You can get a replacement on all four tyres within 20,000 miles, assuming they’re within Fair Wear and Tear guidelines, for free.

That depends on the car you order and whether we have that model in stock or it needs to be built to spec by the manufacturer. Once you’ve made your order, we’ll give you an estimated due date and keep you updated with delivery progress as things change.

You can adjust your mileage on your lease after 12 months. If you do this, we’ll need to amend your existing deal and this could impact the cost of your salary sacrifice agreement.

Because it typically lowers your tax and NI contributions, a salary sacrifice lease may affect your entitlement to state pension as well as other contribution benefits.

You can, provided the amount of salary you sacrifice doesn’t take you below the National Living Wage. Your employer will also need to authorise a second deal, too.

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