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Salary Sacrifice is a scheme that enables employees to ‘sacrifice’ some of their salaries in return for a brand-new company-leased car. Because the sacrifice is a deduction from an employee’s gross salary, cost savings are made on Income Tax and National Insurance. This makes the cost of leasing a car cheaper than leasing the same vehicle on a Personal Contract Hire agreement.
Benefits are increased significantly for both parties if the vehicle leased is electric and if you add insurance and a fully fitted home charger to the salary sacrifice.
Car Salary Sacrifice in a Nutshell...The scheme offers eligible employees the opportunity to exchange some of their taxable salary for a brand-new leased vehicle over a set contract length of between 24 and 48 months. Salary sacrifice is classed as a benefit, therefore HMRC Benefit in Kind (BIK) tax is payable. However, the scheme offers savings because the salary deduction is made from your gross salary (before tax and National Insurance), so it’s cheaper than personally leasing the same vehicle thanks to reduced Income Tax and National Insurance contributions. We’ll provide calculations with your quotation to highlight the savings you can enjoy. Benefits increase significantly if you choose to lease a fully electric vehicle. |
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Car Salary Sacrifice EligibilityTo be eligible for the scheme you must fit the following criteria:
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Choice of Lease Cars on Salary SacrificeAll vehicles are brand new and, in most instances, you can specify accessories and colour (subject to availability). We offer most makes and models, however, you should refer to your employer or broker to check if any vehicles have been excluded from your scheme. The biggest savings are made when you choose a fully electric vehicle, due to the low Benefit in Kind (BIK) tax payable. |
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You may be a business looking to create fantastic incentives for your existing workforce, or perhaps wish to attract new talent. Maybe you are an employee and want to introduce the idea of Salary Sacrifice to your employers?
Download our handy guides below to explore the benefits of Salary Sacrifice from Planet Leasing:
If you want to discuss the many ways Salary Sacrifice could benefit your business get in touch with our specialist adviser:
Yatin Parmar
yatin.parmar@planetleasing.co.uk
020 3196 0333
Whether it's short-term or long-term lease. we'll find the best auto lease deals for you. With our extensive knowledge on the car leasing process and contract hire services, including insurance, credit providers, VAT implications, and TAX benefit information, you can trust our impartial and direct advice.
