Salary sacrifice car lease scheme. What is a salary sacrifice car scheme? Just like the Cycle to Work schemes, employees can sacrifice a fixed amount of their salary each month in exchange for a brand new car. The scheme supports employers with a sustainability agenda, transitioning to zero emissions by providing your employees with electric vehicles. Because the non-cash benefit is taxed at a lower rate than earnings, it’s seen as a cost-neutral option for both parties. Jun 11, 2025 · Salary sacrifice lets you lease an electric car by giving up a portion of your gross (pre-tax) salary each month. Instead, you will be taxed based on the value of the benefit. So why choose to introduce a salary sacrifice car scheme with Tusker?. A salary sacrifice car lease scheme in the UK offers both your business and your employees significant savings and is a fantastic benefit to recruit and retain your best people. The employer leases the car, and the employee pays through reduced salary. With the growing focus on sustainability, electric vehicles (EVs) are leading the charge as the go-to option for savvy employees. Employers can also add insurance and risk cover, providing extra security and peace of mind. See full list on parkers. Jul 21, 2025 · A salary sacrifice car scheme is an employee benefit that lets you lease a car by “sacrificing” a portion of your salary before tax is applied. As such, it is an employee benefit made available by an employer. Salary sacrifice schemes continue to be a popular way for employees to enjoy the benefits of driving a brand-new car while making tax-efficient savings. Mar 26, 2025 · A salary sacrifice car scheme is a way to lease a car through your place of work. Find out if it's the right choice for you. Wondering what the salary sacrifice car scheme is and whether it's right for you or your employees? We reveal the pros and cons in this helpful guide. co. A great example of their popularity is that 70% of pension schemes now use salary sacrifice as the Nov 18, 2024 · With both leasing and salary sacrifice schemes, you don’t own the car. In the case of a lease, the leasing company will own the car over the duration of the contract. The amount is taken before income tax and National Insurance, so employees and businesses can save on the contributions they pay. Employees entering into a Salary Sacrifice scheme will receive a brand new or used car, fully maintained and fully insured for a period of 3 or 4 years (chosen by the employee) and then simply hand the car back at the end of the contract. Unlike leasing, salary sacrifice comes with a host of benefits that make the car more affordable for you on a monthly basis. What is salary sacrifice? Similar to other well-established schemes, such as the “Cycle to work scheme” Lease Electric’s EV Salary Sacrifice Scheme enables you to acquire a brand new EV, of your choice, in exchange for part of your salary. uk Car salary sacrifice is an employee benefits scheme that allows employees to lease a car using their pre-tax income. The method offers a tax-efficient way to lease a car, allowing both the employer and employee to benefit from the arrangement. If you choose to be provided with a vehicle you agree to a reduction in your monthly basic salary (your salary before taking into account, any salary Jan 28, 2025 · Find out how NHS employees in CCS-participating Trusts can lease a brand-new electric car at reduced costs through Octopus EV’s salary sacrifice scheme. More than 1,000 employers are providing their staff with an incredible benefit through our electric car salary sacrifice scheme. Feb 14, 2025 · What is Salary Sacrifice? Salary sacrifice is an employee benefit scheme where you give up part of your pre-tax salary in exchange for a leased car. Feb 20, 2025 · Salary sacrifice car schemes enable employees to have a new car for a fixed monthly cost and period of time by sacrificing an amount from their gross salary in exchange for a fully maintained and insured car. Employees can lease an electric car from us, with payments deducted from their pre-tax salary, making EV ownership more affordable and saving them money. A salary sacrifice lease car is a scheme allowing staff members to drive a brand-new car for a portion of their salary. Electric car salary sacrifice schemes are taxed less, making them an option worth considering in many Our salary sacrifice car scheme is also one of the most affordable ways for employees to drive a brand new fully insured and maintained car for a fixed monthly amount taken from their salary. In this scheme, the employer leases the car on behalf of the employee, and the employee repays the lease payments from their pre-tax salary. Because the payments are taken before Tax and National Insurance, you end up saving 20–50% on the total cost of the car. . Your salary will be reduced pre-tax, reducing the income tax and NIC you must pay. Dec 24, 2024 · A salary sacrifice car scheme can offer tax savings and the ease of leasing a new vehicle. This lowers income tax and National Insurance, while providing access to new or used vehicles and fixed monthly costs. Because the deduction is made before tax and National Insurance, it often works out cheaper than getting a car through a personal lease. Jun 20, 2023 · Like car leasing, with a salary sacrifice car scheme, you pay a set amount of money each month in exchange for a brand-new car. Jun 19, 2025 · A salary sacrifice car lease lets employees lease a car by giving up part of their gross salary. In return, your employer provides a lease car for you, and you pay less income tax and National Insurance on your reduced salary, offsetting the cost. Here are the top 10 cars to consider for salary sacrifice in 2025. jvx kudzked zqc ndy orimt xlrrv rynnt hlvlpf eojra qjzbw