How does Salary Sacrifice Work?
The SalSac scheme enables your employees to lease a brand-new vehicle of their choice through the company, which the employee covers the cost of by sacrificing a portion of their gross salary. There are significant financial benefits to both the employer and employee, especially when an electric vehicle is chosen.
The SalSac Process
You contact your broker to discuss options & receive your bespoke quotations
Once you’ve chosen your car, you and your employer sign the vehicle order form
SalSac will liaise with our broker partner to order your vehicle and guide you through the small amount of paperwork
If you’ve included an electric charge point, our charge point partner will arrange installation with you
When your vehicle is ready, delivery will be arranged with you for a convenient date
Your salary deductions commence the month after you receive the car (exact dates will depend on your payroll dates)
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.
How Do Your Employees Order Their Vehicles?
The employee selects their vehicle, obtains quotations and their salary deductions are calculated
The company and employee provide confirmation of the order and the vehicle is ordered through a manufacturer authorised dealership
The estimated delivery date is provided to the employee and you sign the vehicle hire agreement
The employee addendum to the employment contract is completed
The vehicle is delivered and salary deductions commence
The employee is provided with contact details to assist with any queries they may have during the lease