Salary Sacrifice Car Scheme: What Is It & How Does It Work?
Reduce employee lease costs by 30-40% and drive green! Our salary sacrifice car scheme can supercharge your employee benefits with an EV (Electric Vehicle).
Attract and retain your top talent, boost sustainability goals and enjoy tax savings with our best-in-class EV salary sacrifice car scheme. Employees love it, you'll love the eco-impact, and everyone loves saving money.
Salary sacrifice involves reducing an employee’s gross salary in exchange for a non-cash benefit, such as a car. This requires amending the employee's contract to reflect the agreed-upon reduction in gross salary for the chosen vehicle.
This scheme benefits both employees and employers by offering savings on income tax and National Insurance Contributions (NIC). Under the scheme, the employer is responsible for leasing the vehicle, and the employee incurs a benefit-in-kind (BIK) tax similar to that of a company car. However, the low BIK rate of 2% on pure electric vehicles, valid until the 2024 and 2025 tax years, provides substantial financial advantages.
For a predetermined monthly deduction from their gross salary, employees can lease a fully electric or hybrid vehicle (emitting less than 75g/km of CO2), thus reducing their income tax and NIC burden. Additionally, the scheme helps employers meet sustainability goals by facilitating the transition to zero-emission vehicles for their staff.
You also get to save the planet by reducing your own overall emissions too! If you're interested in learning more about our salary sacrifice car scheme, please book a demo today by visiting this link.
If you want to contact us to learn more about the salary sacrifice car scheme, please get in touch today by ringing us on 0151 728 4711. Alternatively, you can visit our Contact Us page and submit a contact form or email us at Sales@stablevehiclecontracts.co.uk.
What is Salary Sacrifice for cars?
The salary sacrifice car scheme offers a savvy way to get behind the wheel of a brand-new electric car. By sacrificing a portion of your salary for a lease, you'll enjoy significant tax benefits. Since the deduction comes before National Insurance and Income Tax, you'll effectively pay less for the car while still covering the lease cost. Plus, it's a win-win for your employer – they incur no additional expense. So, ditch the outdated ride and navigate the road in style, all while saving money and the planet with fewer emissions.
Stable Vehicle Contracts offers an excellent salary sacrifice scheme. We have over 1,250+ verified 5-star reviews and 98% of customers recommend us when it comes to business and personal contract hire.
Book a call with us today to find our more about how salary sacrifice can help you.
Enquire About Salary Sacrifice Ready to learn more about the salary sacrifice car scheme?
Why your business needs an Electric Vehicle Salary Sacrifice Car Scheme
Struggling to Find the Right Fit?
Recruiting can be a constant battle. You spend time and resources attracting qualified candidates, only to find they choose a different company. What if there's a gap between the talent you seek and the image your company projects? Today's workforce prioritises purpose and social responsibility alongside salary and benefits.
Feeling the Squeeze on Employee Retention?
Employee turnover is costly and disruptive. You invest in training and development, only to see valuable team members leave for seemingly greener pastures. Is your current benefits package falling short in a competitive market? Keeping your top performers happy and motivated requires a strategic approach. Offering a comprehensive and attractive benefits package is key to retention.
Introducing a Powerful Solution: The EV Salary Sacrifice Scheme
There's a way to address both attracting top talent and retaining your A-team: an Electric Vehicle (EV) Salary Sacrifice Scheme. This innovative program offers a win-win scenario for both you and your employees. By allowing them to drive brand new, electric vehicles while significantly reducing their monthly payments, you'll be seen as a forward-thinking employer and your employees will enjoy substantial savings. It's a powerful perk that demonstrates your commitment to both sustainability and employee well-being, setting you apart from the competition.
How much could I save with the salary sacrifice scheme?
In a salary sacrifice scheme, employees give up part of their salary before tax in exchange for a leased car. This arrangement offers benefits for both employers and employees, with employer National Insurance Contributions (NICs) being a key advantage.
Example: The table below demonstrates the savings when signing up to a salary sacrifice EV scheme.
Enquire About Salary Sacrifice About how an EV Salary Sacrifice Car Scheme can benefit your business? Contact us today to discuss your specific needs.
How exactly does the Salary Sacrifice Car Scheme work?
So you've learned how a salary sacrifice car scheme can benefit your business. But how does it work exactly? Below we go through the process step by step of how the salary sacrifice car scheme works. It's not complicated, in fact, it's incredibly easy!
Here are some additional points to consider:
Benefit-in-Kind Tax: You'll still pay some tax on the car benefit, though it's typically lower than traditional car tax. This is called the Benefit-in-Kind (BiK) tax and depends on the CO2 emissions of the car. Electric cars have a significant BiK tax advantage currently, which is why they are the best for the salary sacrifice scheme.
Maintenance Included: Maintenance is included in all of our salary sacrifice scheme deals. Be sure to understand what's covered by speaking with a member of the sales team at Stable if you are unsure. Or you can visit our maintenance guide here to find out.
What are the benefits of a Salary Sacrifice Car Scheme?
What are the benefits for the employer?
- Ensure the safety and security of your employees by reducing "grey fleet" risks through fully maintained and insured company cars
- Eliminate the need to offer consumer credit to your employees
- Save money on employer National Insurance Contributions
- Attractive staff benefit that aids in recruiting and retaining top talent
- Low-risk management through the implementation of an individual salary sacrifice lease car scheme
- Enhance your Environment, Social & Governance (ESG) and sustainability credentials by adopting zero-emission electric vehicles
- Stable Vehicle Contracts can customise your salary sacrifice scheme to meet your business requirements
What are the benefits for employees?
- Include the cost of a fully fitted home charger in the monthly payments
- Drive a fully electric or hybrid vehicle emitting less than 75g/km of CO2
- Select from a diverse range of vehicles under these emissions to match personal preferences
- Comprehensive maintenance and roadside assistance
- No large upfront payment is required - pay a fixed monthly rental
- Road tax is covered for the duration of the contract
- Insurance can be provided by the employer or arranged independently
- No need for personal credit checks for employees that might affect your credit score
- Reduce income tax and National Insurance contributions
- Benefit from low benefit-in-kind tax rates on electric and hybrid cars
- Leverage Stable's buying power for fleet discounts, leading to substantial savings
- Drive a new vehicle for 2, 3, or 4 years and return it at the end of the lease
- Flexible contract terms allow you to choose the mileage and contract duration
Ready To Reap The Benefits? Contact us today to learn more about the benefits of our salary sacrifice car scheme.
Why Employees Are Demanding EV Salary Sacrifice
Significant Savings
Save 30-40% per month compared to traditional Personal Contract Hire rentals.
Zero Deposit
There is no deposit required with Salary Sacrifice. Payments start once you have taken delivery of your brand-new car.
No Employee Credit Checks
As the credit line is taken via the business, there are no individual credit checks needed for the employees.
Maintenance & Tyres Included
We include full service, maintenance & replacement tyres with all our Salary Sacrifice cars. Giving you full peace of mind.
Drive A Brand New Electric Car
We only supply brand-new electric cars, directly from one of our main dealerships.
Home EV Charging Point
The option to include a fully fitted home EV charging point as part of the Salary Sacrifice agreement.
Why lease with Stable Vehicle Contracts?
Stable Vehicle Contracts have leased over 15,000 cars and vans since our inception back in 2009. We're part of a large dealership group called Swansway Motor Group, with over 25 dealerships across the UK. Our office is based in the Volkswagen Van Centre in Liverpool, one of the UK's leading van centres having won multiple awards.
Stable takes pride in our fantastic customer service and we maintain exceptional levels of customer satisfaction. We have over 1,250 5-star reviews from verified customers. Only customers who've received a vehicle from us can leave a review, so you know the reviews are genuine. As well as this, 99% of our customers would recommend us. You can read our glowing reviews on reviews.io here.
Stable is authorised and regulated by the Financial Conduct Authority (FCA), meaning we prioritise your interests and provide fair treatment according to their strict guidelines. This means you can expect a suitable service that puts your needs first.
You can get in contact with us by visiting our Contact Us page, calling us on 0151 728 4711 or sending us an email at Sales@stablevehiclecontracts.co.uk.
EV Salary Sacrifice Car Scheme FAQs
An EV salary sacrifice scheme allows employees to lease a brand new electric car through their salary. They give up a portion of their pre-tax salary, reducing their National Insurance and income tax contributions.
Numerous benefits include attracting and retaining top talent, promoting a greener company image, and significant tax savings for both businesses and employees.
At Stable Vehicle Contracts, we do not charge any setup fees for implementing our EV Salary Sacrifice scheme.
Most businesses in the UK are eligible. There are minimal requirements, such as ensuring sacrificed salaries don't reduce employee income below the National Living Wage.
An EV salary sacrifice scheme can help transition your fleet to electric vehicles, lowering your company's carbon footprint.
Savings can be significant, potentially reaching up to 40%. This is because you're paying for the car before tax and National Insurance are deducted.
Stable Vehicle Contracts offer a wide range of electric car models, from hatchbacks to SUVs, allowing you to choose a car that suits your needs. Our team of expert advisors will be on hand to ensure you pick the right vehicle for your requirements.
There is no deposit required with our Electric Vehicle Salary Sacrifice Scheme. This makes it easier to get into a brand new electric car compared to traditional financing methods.
We always include a full maintenance contract with your EV Salary Sacrifice vehicle. This covers routine servicing, general maintenance and replacement tyres. Ensuring hassle free motoring during the contract period.
Charging your brand new electric car at home is the easiest way to drive electric. Simply plug in when you get home and wake up to a fully charged vehicle. We give the option to include a fully fitted home charger for an additional monthly fee.
No, there typically isn't a minimum salary requirement. However, the sacrificed amount cannot reduce your net income below the National Living Wage.
At the end of the term, you simply hand the vehicle back to the finance company. No need to worry about residual values or selling the vehicle privately. Typically, you can also apply to extend the lease or purchase the vehicle outright if you wish.
Absolutely! By choosing an electric car, you'll be significantly reducing your carbon emissions compared to a traditional petrol or diesel car.
The sacrificed portion of your salary is deducted before tax and National Insurance, lowering your overall tax bill.
Still have questions about the salary sacrifice car scheme? If you're still unsure about the salary sacrifice car scheme, get in contact with us today and let's answer your questions.
Salary Sacrifice Scheme Learning Centre
Salary sacrifice can be a complicated and complex arrangement if you haven't heard of it before, especially since it involves subjects like tax and National Insurance. However, it doesn't need to be. We have created a library of guides below that we hope can help answer any questions you may have about the salary sacrifice car leasing. If you would like to speak to us, you can visit our Contact Us page to find all of our information there. Alternatively, call us on 0151 728 4711 if you want to speak to a salary sacrifice expert immediately.
