Example Payslip with and without a Salary Sacrifice Car Lease?

Understanding your payslip is important because it provides detailed information about your earnings, deductions, and taxes. It allows you to verify that you are being paid correctly and that the correct deductions are being made. Additionally, it can help you budget and plan your finances. If there are any discrepancies or errors on your payslip, it is important to bring them to the attention of your employer as soon as possible.

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When considering a salary-sacrificed lease car, understanding the figures before you sign is paramount. Once you have entered into a financial arrangement with your business and SalSac it may cost you to end the contract early. It is also important that you understand the terminology we use. Please see below for commonly used terms and their meaning.

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Monthly Salary Sacrifice  -  This is the total amount sacrificed from your salary on a monthly basis and can include the leased car with maintenance, vehicle insurance, EV charger payments and any additional extras included.

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Employee Income Tax Saving  -  This is your tax saving created due to the decrease in taxable salary after the monthly salary sacrifice is removed.

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Employee NI Saving  -  This is your National Insurance saving created due to the decrease in taxable salary after the monthly salary sacrifice is removed.

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BIK or Benefit in Kind  -  This is a sum based on the vehicle value and emissions which is payable to the UK government as a tax for the leased car which is seen as a Non-Cash Benefit. Please note that an all-electric car has a much lower BIK Rate than other vehicles such as hybrid or diesel cars. Learn More

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Estimated Net Salary Sacrifice  -  This is the total cost of the leased car after all savings and tax payments have been considered. For example, you take your monthly salary sacrifice then minus both NI and Income Tax Savings. You then add back on the BIK giving you your Estimated Net Salary Sacrifice. Please note that this is an estimated figure as other items such as pensions and salary changes have the potential to affect the end result.