Salary Sacrifice Car Scheme

The perfect way for employees to save money on a new car, learn about the scheme and its benefits.

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What is a salary sacrifice car scheme?

Salary sacrifice for cars is a way for a company's employees to lease a new car, whilst saving money on tax during the process.

In essence, employers lease a car of an employee's choice on their behalf, with a monthly payment taken from their gross salary. 

Because the monthly payment for a vehicle is taken before tax is collected from their income, it's a great way for employees to save money on a new car.

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Learn how the scheme can benefit your business, and what's included for your employees.

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Discover the benefits and refer your company. Existing customers can log in using our online portal.

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How does salary sacrifice work?

Employees sacrifice some of their salary in order to gain a brand-new car. There are no credit checks required on the driver and no large upfront payment on the vehicle.

The all-inclusive fixed monthly payment includes insurance, maintenance (and more) and is deducted from their salary before tax, all the employee has to worry about is fuel.

A salary sacrifice vehicle is subject to company car tax, also known as Benefit-in-kind. This is paid before tax and national insurance, meaning there are plenty of savings to be had, especially for those opting for an electric vehicle.


What's included as part of our salary sacrifice scheme?

Frequently Asked Questions

Do employees own the car in a car salary sacrifice scheme?

No, employees won't own any car leased through the salary sacrifice scheme. As part of the scheme, businesses are essentially leasing the car on behalf of their employee(s), helping them to save money when paying for the car on a monthly basis. However, they can buy the car for a pre-agreed sum after the agreement.

What's the difference between a company car and a salary sacrifice car?

A car leased through salary sacrifice is offered as a perk for employees by their employers, since it gives them access to a new car whilst saving money, A company car is often used as a tool to serve a purpose, and is owned by the company.

Are electric cars available through a salary sacrifice car scheme?

A variety of electric and hybrid cars are available through the salary sacrifice car scheme. Not only can employees save money on leasing a new vehicle, they can enjoy the benefits that come with electric and hybrid vehicles, such as reduced running costs.