Salary Sacrifice FAQs

A salary sacrifice arrangement is an agreement to reduce an employee’s entitlement to cash pay, in return for a non-cash benefit.

Salary Sacrifice enables an employee to use a portion of their gross salary before Income Tax and National Insurance (NI) is deducted to pay for a brand-new lease vehicle for a set period.

No, SalSac make your scheme simple for you and your employees. In partnership with your broker, we assist from initial scheme set-up and employee assistance, the simple order and delivery process of the vehicle, to support with payroll and P11d reporting responsibilities, we're here to support you throughout the duration of the scheme.

• A brand new lease car of your choice

• Fully comprehensive fixed-cost motor insurance

• Home charger and installation

• Vehicle servicing, maintenance and repair including tyre replacement

• Roadside assistance in the event of a breakdown

• Road fund licence for the duration of the lease (Road Tax)

• Early Termination protection

• Employee aged between 18 and 75 years of age (maximum age of 78 at the end of the lease term if insurance included)

• A permanent UK resident

• Hold a valid driving licence for the duration of the lease period

• A permanent PAYE employee

• Basic pay must not fall below the National Minimum or Living Wage after deductions

BIK is calculated based on the P11d value of the vehicle, its fuel type and CO2 emissions. For more information please refer to the HMRC BIK calculator https://www.gov.uk/tax-company-benefits/tax-on-company-cars

1. Company joins SalSac and we work with you to roll out your scheme

2. Employee received a quotation for their chosen vehicle

3. Funding is secured, paperwork completed & vehicle is ordered

4. Home charger, if chosen, is installed

5. Vehicle Insurance set up, if included

6. Vehicle delivery is arranged for a convenient date

7. Addendum to employment completed prior to vehicle delivery

8. Financial administration support provided by SalSac

9. Salary deductions begin after delivery of the vehicle