Salary sacrifice car lease

Leasing an electric car through our salary sacrifice car benefit is extremely cost effective, as our benefit combines tax efficiencies with full manufacturer discounts, and routine servicing, maintenance are included. Reductions are made from employees’ gross salaries, so they can also make significant savings on both their Income tax and National Insurance.

Savings will vary depending on your choice of car and your salary. There are hundreds of cars to choose from, but the cars delivering the best savings through salary sacrifice are electric vehicles due to the low CO2 emissions, which means there is a lower company car tax or benefit in kind tax.

Organisations will normally report the value of the car benefit to HMRC either through their payrolling of benefits (Tax at Source) or through the P11D process. If a benefit is 'taxed at source' it means that the benefit you receive has already had the benefit-in-kind tax taken through payroll. In terms of benefit in kind, it means that employees don’t have to notify the tax office about their salary sacrifice car.

If your organisation doesn’t ‘tax at source’, employees will need to ensure the tax office is notified about their car and they will then have the benefit-in-kind tax deducted via their PAYE Coding Notice. Doing this promptly once the car is delivered ensures the correct amount of tax is paid in each year of the lease.

Our team cannot offer either legal or tax advice, and so we suggest that you seek a professional to answer any tax-related questions that you might have. However, you might also be able to find helpful information by visiting this company car page on the HMRC website.

Yes, a car purchased through salary sacrifice would be deemed a Company Car benefit in kind, and taxed as such. Any quote you receive for the car will confirm the taxable value of the car. We suggest that you seek professional assistance should you have any tax queries regarding this.

We work with employers to offer a range of lifestyle protections should an employees’ circumstances change such as maternity or paternity leave, redundancy, resignation and long-term sickness so that there are no early termination fees due. If you have a car through a salary sacrifice scheme, please check your scheme policy to understand what is and isn't included. 

At the end of their salary sacrifice car scheme, employees will have the choice to return their car, order a new car, or purchase the car at its market value.