Salary Sacrifice Car Scheme: Save on Your Next Car 

There are some eligibility criteria for employees wishing to participate in salary sacrifice. This is in place to safeguard both the employee and the employer - ensuring that the scheme runs smoothly!

HMRC criteria need to be followed by every employee leasing a car via salary sacrifice and are non negotiable. Employees must have:

• a minimum salary above the National Minimum Wage after all gross salary sacrifice reductions. Check out this article for more details: Is there a minimum salary requirement?

• held a full driving licence for a minimum of 6 months, with no more than 6 current endorsement points for all drivers of your car

Your company may determine which employees are eligible for the Scheme (and participation is at their discretion) – however, typical employees must:

• be at least 21 years old

• have completed 6 months’ service and passed their probation

To check if you eligible to take part in the Scheme please speak directly with your company Scheme coordinator.

With salary sacrifice, the savings on your vehicle lease can range from 30-60% of the total cost. The amount you save depends on factors like your base salary, your tax band, and the cost of the vehicle itself.

Essentially, the lease cost is deducted from your gross salary, which reduces your tax and national insurance contributions. The higher the cost of the lease, the greater the savings you'll experience.

To see how much you can save on a wide variety of cars, go to our quote tool.

If you resign during your lease, you may incur an Early Termination Fee, which depends on your contract length and time elapsed. If you have Enhanced Resignation Protection, you may not be liable for this fee.

What is an Early Returns Fee?
This fee, typically 50% of the remaining lease cost, is charged by the lessor when returning the car. Additional costs for excess mileage, damage, or missing items may apply.

The Enhanced Protection Service:
Enhanced Protection Service will generally cover you in cases where you resign from your role midway through your lease and we will cover the fee. If you don’t have Enhanced Protection Service in place, you may not be covered in any resignation cases, and therefore you are liable for the early termination fee.

How long do I have to have had my car before I am covered by your protection?
You can see in the table in your Employee Contract Amendment Agreement how long you have had to have had the car for before you are covered. If you resign within that time, even with Enhanced Protection Service, you may not be covered in the case of resignation. If you resign outside of that time with Enhanced Protection Service in place, you will be covered by this protection and not have to pay the Early Returns Fee.

For more information on early returns - see our guide!

Complete Risk Protection

We provide market-leading protection from day 1, to safeguard you from unexpected costs if your car needs to be returned early.

No cost

Car Salary Sacrifice should be affordable for all. There is no net cost to your business to run the scheme.

Best prices available

You will access the top leasing companies to ensure your employees get the best prices are available. The best prices are required to get good employee take-up.

Trusted 5 star service

Serving thousands of customers and rated “Excellent – 5 stars” on Trustpilot, you can rest assured that you are in good hands.

With no setup or running costs, our Administration Fee is equivalent to your company's tax savings, so you can roll out the scheme at no cost to your business! We collect our Administration Fee in accordance with the payment terms in our Administration Services Agreement with the company

The Admin Fee is the sum of:

• Reduction in company NI contribution

• Reclaimable VAT

• Minus the tax on BIK

Employer NI savings

Because the employee's salary has been lowered, the company will see natural reductions in NI contributions.

Reclaimable VAT

The reclaimable VAT for each car and any additional services or fees (which are currently set at 10% for lease or hire costs and 20% for other services and fees).

Our Administration Fee remains the same, even if the company is not VAT registered or is partially exempt from VAT. Instead, we ensure net zero cost to the company by adjusting the salary sacrifice arrangement for each car ordered under the scheme. These adjustments generate an amount equivalent to the VAT Savings for that car and such amount is instead used for the payment of the Administration Fee.

Our Administration Fee is payable in full for each car arranged under the scheme and the payment obligations remain in full force and effect even after the termination of the scheme.

We are happy to help your business to set up its Salary Sacrifice car scheme. To get started, give us a call and talk with one of our Product Specialists to understand how salary sacrifice will work in your business.

Our Product Specialists will handle the scheme setup and launch, ensuring a hassle-free process for you.

We’ll assign a dedicated Customer Success Manager to support your business with the launch of the scheme - this includes employee webinars, demo days, promotions and more.

Once your scheme is launched our specialists and Customer Success Teams will regularly be in touch to ensure your scheme is an ongoing success.