0330 174 6768 enquiries@salsac.co.uk
Get the electric vehicle you love through a salary sacrifice, a smart, simple and cost-effective way to finance your vehicle.
Salary Sacrifice schemes allow employees to “sacrifice” a portion of their salary in exchange for a brand-new electric company-leased car. Because the deduction comes from your gross salary, you benefit from savings on Income Tax and National Insurance, making it more cost-effective than a Personal Contract Hire (PCH) agreement.​
​The advantages are maximised with EVs, and you can further enhance your package by including insurance and a fully fitted home charger. This makes going electric simpler, cheaper, and more convenient than ever.
How Salary Sacrifice Car Leasing Reduces Your Tax Bill and Lowers the True Cost of Driving an EV.
Salary Sacrifice Leasing 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 due to the low benefit-in-kind.
Salary Sacrifice Eligibility
Many employers set their own eligibility criteria for participation in the scheme. Below is a list of common eligibility and affordability requirements, some of which may be mandated by the vehicle funder or motor insurer.
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Employees may be required to be between 18 and 75 years old
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​Employees must hold a valid driving licence for the duration of the lease period
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​Employees must be a permanent PAYE employee & have completed their probationary period​
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Employees must be permanent UK residents
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Employees' gross basic pay must not fall below the National Minimum Wage or National Living Wage after the salary sacrifice deduction
Salary Sacrifice Car Options - Choosing the Right Lease Vehicle for You
A salary sacrifice car scheme lets you drive a new vehicle while potentially reducing your tax and National Insurance contributions.
When choosing the right car, consider:
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Driving needs: Daily commute vs. long journeys, passenger and cargo space.
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Lease type: Fully maintained (includes servicing and insurance) vs. non-maintained.
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Tax implications: Benefit-in-Kind (BIK) depends on COâ‚‚ emissions and list price; low-emission and electric cars can reduce tax.
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Running costs: Fuel or electricity, insurance, and maintenance.
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Flexibility: Lease term, upgrade options, and end-of-contract choices.
Be sure to consult your broker or salary sacrifice partner to choose a vehicle that balances savings, practicality, and lifestyle. The UK leasing market moves quickly, with deals changing daily, so staying informed can help you get the best value.
