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Calculating Salary Sacrifice Car Leasing

Here SalSac aims to explain how salary sacrifice is calculated, what the key drivers are and highlight the importance of accurate calculations enabling informed decisions.

 

Salary Sacrifice like all car leasing is a long-term commitment & employees should always consider all options before entering into a car salary sacrifice arrangement.

Key Salary Sacrifice Concepts

Understanding Salary Sacrifice as well as Car Leasing Terms will help employees and employers quickly grasp the fundamentals surrounding Salary Sacrifice.

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Funder - The institution/bank that owns the car and leases/rents it to the employee and employer.

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Leasing Broker - The broker's primary role is to assist clients in finding the most suitable lease agreement for their needs and negotiating favourable terms with the funder.

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Supplying Dealer - The car dealership that prepares and delivers your leased vehicle.

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BIK or Benefit in Kind - This refers to the Tax Payable for having a work benefit such as a leased car.

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Early Termination - Sometimes referenced as "ET" Early Termination refers to the process if a car has to be cancelled mid-contract.

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Initial Rental - The first payment made for the lease, this is not a deposit.

What do I need to get a salary sacrifice quote?

In order to lease a car through a salary sacrifice you will need the following information. If you are unsure please contact us & we can help build your bespoke quotation.

 

  1. Your Gross Salary

  2. Taxable Country (UK and Wales or Scotland) 

  3. Monthly Price of the Car Lease

  4. Value of the Vehicle (P11D)

  5. Fuel Type

  6. Electric Range (if any)

  7. CO2 Emissions

Accurate Salary Sacrifice Calculations 

When calculating salary sacrifice figures it's important to be accurate and clear as what may seem a small technical detail can make a big difference to the overall tax calculations.

 

For example, if the car in question is a plug-in hybrid and has 69 miles electric range the Benefit in Kind is currently (19/08/2024) 8%. However, if the vehicle and derivative has a 70-mile range then the BIK is reduced to 5%. 

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This and many other factors such as emissions and tax bands can drastically alter employee savings. To get an accurate salary sacrifice quote please contact our team on 0330 174 6768 or email us at enquiries@salsac.co.uk.

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Do you have a question?

Please message us via our live chat in the bottom right-hand corner or call our team on 0330 174 6768.

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©2026 by SalSac Ltd.

Salsac Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486). Permitted activities include acting as a credit broker not a lender.

 

We can introduce you to a limited number of finance providers. We do not charge a fee for our Consumer Credit services. We do not act as a financial adviser, or fiduciary. We act in our own interest, whichever lender we introduce you to, we will typically receive commission from them based on either a fixed fee or a fixed percentage of the amount you borrow. Any and all commission amounts will be fully disclosed to you as part of your sales journey. You will be required to give your fully informed consent to our receipt of this commission. By doing this, you acknowledge that you understand our role as a credit broker, and that we will receive a financial incentive if you take out a loan from a lender that we introduce you to.

 

All finance applications are subject to status, terms and conditions apply, UK residents only, 18s or over, Guarantees may be required. Please see our full regulatory disclosure for Appointed Representatives coming onboard for Consumer Credit permissions.

 

Please read the section in yellow and let me know if this is relevant to Salsac Limited.

 

Salsac Ltd (company number 13587357), (VAT number 393737161) is an appointed representative of Lloyd Latchford Group Limited (FRN 496330) which is Authorised and regulated by the Financial Conduct Authority. You can check this by visiting the FCA Register.

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