Employer Salary Sacrifice
Why You Should Implement Salary Sacrifice?
Salary sacrifice is a benefit you can offer to your employees, and it’s becoming increasingly important as employees seek roles where they feel valued and supported. By offering salary sacrifice, you give your team the chance to drive a brand-new electric car at an affordable cost.
This arrangement can also result in reduced National Insurance contributions for you due to the employees’ reduced gross salary. With these savings, you can choose to pass on a portion or all of the savings back to your employees to help with costs or reinvest them into the business. It’s a great benefit to offer, with minimal to no costs involved.
If you want to learn more or discuss how salary sacrifice can benefit you and your business, get in touch today to find out how it can help.
What Are the Benefits of Salary Sacrifice?
- With such a competitive job market and employees placing high value on workplace benefits, salary sacrifice is a great way to attract new talent and retain it. Offering employees the opportunity to drive a brand-new electric vehicle, along with cost savings, makes it an appealing benefit.
- Salary sacrifice encourages employees to drive electric vehicles, helping reduce your business's indirect emissions while supporting sustainability goals
- Salary sacrifice reduces the employee’s gross salary, lowering NI contributions for the employer and providing cost savings that can either be retained by the employer or passed on to the employee.
NI Contributions
Salary sacrifice reduces the employee’s gross salary, lowering NI contributions for the employer and providing cost savings that can either be retained by the employer or passed on to the employee.
Employee Retention
Enhance employee retention by offering the opportunity to drive a brand-new car, while also benefiting from savings on taxes and National Insurance contributions.
Attract top talent with a valuable employee perk that also provides significant company benefits.
Eco Conscious
Salary sacrifice encourages employees to drive electric vehicles, helping reduce your business's indirect emissions while supporting sustainability goals.
National Insurance Contributions
A benefit of salary sacrifice for an employer is the cost savings on National Insurance (NI) contributions. With salary sacrifice, the employee’s gross salary is reduced, resulting in lower NI contributions for the employer.
Below is an example of two different salaries and the cost savings a business can achieve. These savings can either be given to the employee—up to 100%—or reinvested into the business.
The figures below are based on the 2025/26 tax year and provide an example of potential cost savings. This is just an example to illustrate how NI savings can work.
How Salary Sacrifice Works for Employers
At V4B, we make the Salary Sacrifice process seamless and hassle-free, allowing employers to offer cost-effective vehicle benefits to their employees with ease. Our streamlined approach ensures simplicity at every stage. Below is a step-by-step overview of how the scheme works, from initial setup to vehicle delivery.
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