Salary Sacrifice Car Scheme
What is Car Salary Sacrifice?
Is a scheme that allows your employee to sacrifice a proportion of their gross salary for a company leased car.
Because the sacrifice is deducted from the employee’s gross salary, the cost savings are made on Income Tax and National Insurance, which means the cost of leasing a car is lower than the same vehicle on a Personal Contract Hire or Personal Contract Purchase agreement.
Significant benefits are to be made as a result of low BIK (Benefit in Kind) charges for Pure Electric Vehicles.
Employer Benefits
Savings for your company
Savings are made via lower National Insurance contributions and VAT reclamation on the finance rental (50%) and the maintenance rental (100%) of the agreement.
Full support package
We administer the whole process for you, from initial set up, company credit line, quotations including salary deduction, Income Tax and National Insurance savings and BIK calculations, through to vehicle order, salary deduction calculations, vehicle delivery and in life support for both employer and employee, including periodic reporting to assist with HMRC submissions and payroll deductions.
Tailored for your business
The scheme can be tailored to your company’s requirements for example, limiting employee choice to size, type of vehicle or contract length.
Vehicles are transferrable
If an employee leaves the company, their lease vehicle can be transferred to the employees new employer or to another employee in your company, subject to eligibly criteria (exclusions may apply)
No cost to your business
There are no set up fees and the scheme is cost neutral to your company. The scheme is implemented with all employee savings retained by the employee.
Electric Vehicles
When pure electric vehicles are chosen it will assist your green agenda and help to deliver on your Environmental, Social and Governance (ESG) and Corporate Social Responsibilities (CSR)
Grey Fleet Reduction
This scheme assists with duty of care and health and safety in the management of grey fleets (employees using their own vehicles for business purposes)
To Find Out More
Staff Benefits
One set monthly salary deduction includes:
- Significant savings compared to a retail alternative
- Vehicle servicing, maintenance and repair
- Tyre replacement, worn, punctured and damaged
- Breakdown recovery in the event of a breakdown
- Road fund licence for the duration of the term
- Fully comprehensive motor insurance with the cost fixed for the duration of the lease (exclusions apply)*
- Fully fitted electric vehicle home charger
A new car every 2, 3 or 4 years
*Insurance provided by Aviva through Lloyd Latchford Group Ltd
Tax and National Insurance Savings
Because the payment is taken from the employee’s gross salary via payroll, they benefit from Tax and National Insurance savings (typically 30-40% savings for an electric vehicle) making the rental substantially less than a Personal Contract Hire (PCH) agreement.
Low Benefit in Kind (BIK) payable for electric vehicles
BIK rates on an electric car are currently only 2% until 2025, rising by only 1% per annum until 2028.
No deposit or employee credit check
As the lease is in the name of the employer there are no credit checks against the employee
