Employee Salary Sacrifice
What is Salary Sacrifice for an Employee?
Salary sacrifice is a voluntary agreement between an employer and an employee where the employee gives up part of their gross salary in exchange for a non-cash benefit. One popular example is car leasing, where employees can use a portion of their salary to access a company car.
With this arrangement, the car cost is deducted before tax and National Insurance, which lowers your taxable income. This can lead to significant savings, making it a cost-effective way to enjoy a new vehicle while reducing overall tax and NI contribution.
We have all the information you need on Salary Sacrifice and why it has become such a popular choice for many employees. Drive a brand-new electric vehicle or a used electric vehicle on salary sacrifice..
Benefits of Salary Sacrifice for Employees
- With a Salary Sacrifice car lease, you avoid paying an upfront deposit and instead make fixed monthly payments throughout your contract.
- Drive a brand-new electric vehicle with the latest technology and safety features at an affordable price. You can even customise your order with a factory build to suit your needs.
- Your monthly payment covers everything—insurance, tax, maintenance, and roadside assistance—so there are no unexpected costs for things like new tires or breakdowns. You can even include a home charger in the package for added convenience.
- No need to worry about depreciation. At the end of your contract, simply return the car and upgrade to a new one without losing value, as you never own the vehicle.
If your company currently doesn’t have a salary sacrifice scheme, that’s fine – we are always happy to assist.
Example of How Salary Sacrifice Works
You might be reading all this and still feel unsure about how it works, especially when it comes to an employee's gross salary. To make things clearer, we’ve broken it down in the table below, offering a simple example of how salary sacrifice works.
The Process
We have a straightforward process, and we’re here to guide you every step of the way, ensuring a smooth and seamless experience from start to finish.
Talk to an Expert Today!
Do you have any questions? Want to know how to get started?
We’re happy to talk with you and help you better understand the first steps when it comes to salary sacrifice. Our team of experts is here to guide you through the process, answer any concerns, and ensure you make informed decisions that align with your financial goals.
Get personalised advice, explore your options, and discover how salary sacrifice can benefit you. Contact us today for a free consultation!
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