A car lease salary sacrifice scheme can have several disadvantages, including:

• Reduced take-home pay: By sacrificing a portion of your salary for the car, you could affect your entitlement to some benefits and pensions.
• Long-term commitment: Once you have entered into a car lease salary sacrifice scheme, you are committed to the terms of the agreement and may be subject to penalties if you want to terminate the agreement early.
• Mileage restrictions: There is usually a set mileage allowance in car lease schemes, if you exceed it you will need to pay an extra amount, usually a pence per mile charge if you have not been able to amend the mileage allowance.
• Changes to taxation: If there are any changed to taxation, i.e. the rate of VAT, Insurance Premium Tax or BIK, this will effect the salary sacrifice.

It's important to consider all the aspects of a car lease salary sacrifice scheme and consult with an independent financial advisor to determine if it's the best decision for you. It's also important to carefully read the terms of the agreement and understand the details of the scheme before making a commitment.

1. The employee selects their vehicle, obtains quotations and their salary deductions are calculated

2. The company and employee provide confirmation of the order and the vehicle is ordered through a manufacturer authorised dealership

3. The estimated delivery date is provided to the employee and you sign the vehicle hire agreement

4. The employee addendum to the employment contract is completed & charger fitted if applicable

5. The vehicle is delivered and salary deductions commence via your payroll department

6. The employee is provided with contact details to assist with any queries they may have during the lease

Explained simply a salary sacrifice can save you money and is a means of exchanging part of your pre-taxed salary for a benefit, in this case, a brand new electric lease car for a fixed term such as 2, 3 or 4 years.

SalSac and your broker manage the whole process. From initial set-up, including employee eligibility, company credit line, employee vehicle quotations including salary deduction, income tax and NI savings and BIK calculation.

Through to, vehicle order, salary deduction calculations, vehicle delivery and in-life support for both employee and employer, including periodic reporting to assist with HMRC submissions and payroll deductions.

A salary sacrifice car scheme can offer a number of benefits, including:

• Lower taxes: By sacrificing a portion of your salary in exchange for the use of a car, you can reduce the amount of income tax you pay.
• Lower car costs: You may be able to afford a more expensive or higher-spec car than you would be able to purchase outright with additional savings available through our SalSac broker network.
• Potential fuel savings: You may be able to choose a more fuel-efficient car, which can save you money on fuel costs with all-electric cars offering the highest savings.
• Reduced National Insurance Contributions: An employee choosing the scheme will be paying a reduced amount of National Insurance and in turn increase the net take-home salary.
• Maintenance and repair costs are included: These costs are included in the overall package so it means less cost for employees and less/no nuisance for the employer.
• Newer cars: The scheme allows employees to access newer cars than they may be able to afford to purchase outright as all Salary Sacrificed lease cars are supplied brand new from the UK dealer network.

However, it's important to note that a salary sacrifice car scheme is a long-term commitment and will affect your take-home salary over time. It's important to consider all aspects of the scheme and consult with an independent financial advisor to determine if it's the best decision for you.

Salary Sacrifice is a scheme that enables employees to ‘sacrifice’ some of their salary 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.

To be eligible for the scheme you must fit the following criteria:

• You must be aged between 18 and 75 years old
  
• You must hold a valid driving licence for the duration of the lease period
  
• You must be a permanent PAYE employee and have completed your probationary period
  
• You must be a permanent UK resident
  
• Your gross basic pay must not fall below the National Minimum Wage or National Living Wage after the salary sacrifice deduction