Salary Sacrifice Scheme

• Income Tax Saving
• National Insurance Saving
• Just Charge, Drive & Go – Fully Comprehensive Insurance, Breakdown Cover, Servicing, Maintenance, MOTs & Accident Management all can be included
• Spouse/Partner & kids can be added to the policy
• Up to 3 cars can be taken on the scheme, subject to meeting criteria
• Affordable electric cars for all the family
• Help & guidance on installing charging points at your home
• No upfront costs or colleague credit checks
• Flexible terms and mileages to suit your personal and business needs

• Market leading scheme with minimal risk to your business
• Long term sickness & maternity leave support
• No set up costs
• An attractive benefit helps in recruitment & retention of staff
• Corporate social responsibility – reducing your company’s carbon footprint
• NIC savings for your business
• The scheme can be integrated into most HR portals
• Long term sickness & maternity leave – financial support
• All colleagues eligible, not just company car drivers

A salary sacrifice arrangement means you agree to give up the right to receive part of your gross salary due under your contract of employment in exchange for a non cash benefit – in this case the use of a brand new car. The salary is sacrificed before Income Tax and National Insurance resulting in tax savings on the benefit.

Because you are sacrificing gross salary you can save between 32% and 42% in Income Tax and National Insurance (assuming that you are a basic or higher rate taxpayer respectively).

HMRC view this arrangement as an employment law rather than a tax law matter, as you are free to agree a change in your remuneration with your employer. Entering into this arrangement is in essence the same as agreeing to a reduction in your salary. To fall within the tax rules HMRC will want to establish that a change in salary is "permanent" meaning that any change must be for a minimum 12 month period. In addition you must also agree to sacrifice your salary before you take delivery of your car. You will be liable for Benefit In Kind (BIK) as the scheme operates as a company car scheme, however choosing lower CO2 vehicles will outweigh this tax and make the tax savings under the scheme particularly beneficial.

When reviewing the vehicles available to you through Salary Sacrifice, always look for the lowest CO2 to identify the vehicles with the most effective tax savings and lowest BIK. That is why most Salary Sacrifice schemes focus on fully electric vehicles.

Benefit in Kind is payable on a car if it is made available via your employer and used for private use by an employee. The tax charge is lower for cars with lower C02 emissions. The Benefit in Kind is deducted from your salary by payroll or a change in your tax code.

You need to be in paid and permanent employment to be eligible.

No, unfortunately the scheme is only available to employees on a permanent contract.

The maximum term for the scheme is 48 months. It may be possible to purchase your vehicle at the end of the scheme and our Customer Support Team will be happy to provide further details.

Yes, you cannot sacrifice an amount which would result in your salary being lower than the National Living Wage or is outside of your Employers Scheme Policy. The following state benefits also need to be considered:

• any pension scheme being contributed to (in particular this may be important if nearing retirement and a final salary pension scheme)

• entitlement to contribution based benefits like a State Pension

• entitlement to earnings related benefits like Maternity Allowance

• entitlement to work related payments like Statutory Sick Pay

In respect of any pension arrangements with your employer, please contact your schemes Pension Consultant for guidance and further information. Provided you pay the minimum requirement for National Insurance payments this scheme should not affect your basic State Pension.

A salary sacrifice arrangement may affect your entitlement to state benefits and tax credits and you should carefully consider the possible effects before you decide to go ahead. Please seek advice from HMRC’s Tax Credit Helpline on 0845 300 3900.

Yes, student loan repayments are calculated on your earnings. As your gross salary is reduced, so are your student loan payments. This may increase your repayment period. 

For more information please visit HMRC's website: https://www.gov.uk/topic/busin...

the Student Loans Company website: https://www.gov.uk/government/...

If there is a court order against your pay your Employer is obliged to collect this from your net salary as instructed from the courts. If you are in this situation you are advised to seek independent legal advice.

No, your eligibility will still need to be checked and approved by your Employer before you're able to order a car on the scheme.

The Salary Sacrifice Agreement is between the Employer and the Employee and the vehicle contract is between the Employer and the leasing company.

The system generates an Employee Salary Sacrifice Agreement when you are ready to order your selected vehicle. Please also refer to the Scheme Policy detailed on the system.

Due to the current Benefit in Kind legislation, the most cost effective vehicles on the scheme are those that have a low CO2 rating. However there may be the opportunity to take advantage of certain manufacturer incentives or promotions on other vehicles.

• The vehicle you choose

• Maintenance of the vehicle including all servicing, batteries, exhausts and tyres under normal wear and tear conditions. This excludes any damage to the vehicle and updates to satellite navigation systems

• Fully comprehensive motor insurance including all business travel for the policy holder and their domestic partner. Any additional drivers are insured for social, domestic and pleasure purposes only

• Protection against penalty charges incurred as a result of exiting the scheme early due to you leaving your Employer and returning a vehicle as a result of resignation, redundancy, loss of life, loss of licence on medical grounds

• Annual vehicle tax

• Roadside assistance (homestart & recovery UK & European cover)