Salary Sacrifice
Drive Smart with a bespoke Salary Sacrifice Scheme
What is Salary Sacrifice?
Salary Sacrifice is an agreement between an employer and employee that allows staff to drive a brand-new car in exchange for part of their gross salary. The employer leases the vehicle in the company’s name, and the employee sacrifices a portion of their pay to cover the cost.
In return, they enjoy a brand-new, fully maintained car — with motor insurance, servicing, tyre's and road tax (VED) all included in one easy monthly payment.
Because this arrangement reduces taxable income, both employee and employer can make significant National Insurance and tax savings. It’s a win-win for everyone.
Please see below a few popular questions we have answered to see if Salary Sacrifice will work for you and your business.
Why Choose a Salary Sacrifice Scheme?
For Employers
- Cost-effective benefit – Lower National Insurance contributions and potential savings for your business.
- Attractive perk – A powerful tool for recruitment and staff retention.
- Greener image – Support your organisation’s sustainability goals by offering electric and low-emission vehicles.
- Simple administration – We manage everything, from leasing to insurance and maintenance.
For Employees
- All-inclusive package – Brand-new car, fully insured, maintained and taxed.
- Tax and NI savings – Pay less in income tax and National Insurance while enjoying a new vehicle.
- Peace of mind – No unexpected repair bills or hidden charges.
- Flexible protection – Optional cover for circumstances such as sickness, resignation, redundancy or parental leave.
Who Can Apply?
Your business can qualify for a Salary Sacrifice scheme if:
- Employees who are paid through a recognised PAYE system.
- You have at least five eligible employees in your business
This includes both limited companies and limited liability partnerships.
What Vehicles Are Eligible?
Salary Sacrifice is designed to encourage cleaner driving.
Eligible vehicles are electric or plug-in hybrid (PHEV) models with CO₂ emissions of 75g/km or less.
There’s no upper limit on the vehicle’s price, so you can tailor your fleet to suit your team’s needs.
Salary Sacrifice schemes are one of the most cost-efficient ways to drive a new car. They combine tax efficiency, employee satisfaction, and corporate sustainability — all while reducing running costs and administration for employers.
Every scheme is fully supported from start to finish, ensuring a smooth and compliant setup for your business and total convenience for your employees.
Theoretically, any broker can create a product and call it "Salary Sacrifice"
The three elements required for the scheme are:
Business Contract Hire
Full Maintenance and Servicing
Motor Insurance
However, only a specialist scheme provider is approved by HMRC to enable you and your employees to receive the full tax and National Insurance savings.
Sadly, there are a number of "experts" in the industry that claim they can offer the scheme but are not HMRC approved.
You have been warned................
Ready to Get Started?
Join the growing number of UK businesses offering smarter, greener motoring options to their staff. Get in touch today to see how a Salary Sacrifice scheme can transform your employee benefits package — and save money for everyone involved.
Contact us to find out more and receive a tailored proposal for your organisation.