Salary Sacrifice Eligibility | How To Know If You Are Eligible?

Have your work started offering a salary sacrifice scheme? Or are you an employer looking for ways to bulk out your benefits package? Either way, salary sacrifice car schemes are great ways to reduce the monthly costs of running a vehicle, especially when choosing an electric car with Fleet Evolution. They are also a fantastic way of making your employees happy, new car for lower spending? Count me in!

Here at Fleet Evolution, we work with companies of any size, whether you have two employees or 2000! We make it our mission to help the nation access brand-new electric vehicles!

There are many benefits to getting a salary sacrifice scheme at your company, and as with most schemes, you have to meet specific criteria for this to happen. It’s nothing too serious; most people signing up for our schemes will meet all of them; we just need to be sure!

Find out all you need to know about Salary Sacrifice.

Salary Sacrifice Eligibility Requirements:

If you’re working permanently at an organisation, you will be eligible to take part in a salary sacrifice scheme as long as you meet the following requirements:

• You’re over the age of 21
• You’ve worked at your company for a minimum of six months
• Your salary must not fall below the national minimum wage, or living wage, during monthly payments after any salary sacrifice arrangements.
• You must have had a full driving licence for more than six months with no more than six current endorsement points for all vehicle drivers.

If you meet all of these requirements, great news! You can start to look forward to getting yourself a brand-new electric car!

What Will My Salary Sacrifice Contributions Include?

Every month under the salary sacrifice scheme, a small portion of your gross salary will be deducted to make the payments for your car. Your take-home pay is slightly lowered, but this means you pay less tax and national insurance contributions. The deductions that are made will go towards:

• General use of your new vehicle
• Scheduled maintenance
• Routine tyre replacement, including puncture repairs
• Fleet management
• Road fund licence
• Comprehensive motor insurance (subject to your employer’s scheme rules).

What Are The Benefits Of A Salary Sacrifice Electric Car Scheme?

Salary sacrifice schemes are becoming increasingly popular in the UK. Not only can you save money on your national insurance and make a positive contribution to the environment, but there are many other benefits too!

For starters, salary sacrifice electric car schemes mean you don’t have to worry about finding enough cash upfront to purchase an electric car. Instead, you can make monthly payments deducted directly from your salary; this makes it much easier for those who may not have the funds available to buy an electric car outright.

Another great benefit of a salary sacrifice arrangement is that you can use the money saved on tax to help pay for other things, such as holidays or pension contributions. You will also save on running costs, as electric cars are much cheaper to maintain and fuel than petrol or diesel equivalents.

The environmental benefits of a salary sacrifice electric car scheme shouldn’t be underestimated either. Driving an electric car cuts emissions, but the money saved can be put towards green initiatives, such as renewable energy sources or sustainable transport schemes.

Overall, salary sacrifice electric car schemes are a great way to save money and help the environment simultaneously. So why not take advantage of this scheme today? You never know – it might just be your best decision!

What Vehicle Can I Get Under a Salary Sacrifice Scheme?

With Fleet Evolution’s salary sacrifice scheme, you can choose from a whole raft of vehicles! We’re sure you’ll find the perfect car to suit your needs, and if you’re struggling, the Driverline team are on hand to help! Request your login to our Quote Engine here and get quoting on cars!

We always recommend choosing an ultra-low emission vehicle (ULEV). Not only will they save you money on tax and fuel, but they will also save the planet! If you want to talk about getting a car with a salary sacrifice scheme, get in touch with us today.

Salary Sacrifice Scheme FAQs:

We’ve done our best to try and answer some of the most common questions about a salary sacrifice arrangement:

What Qualifies For Salary Sacrifice?

Salary sacrifice is a great way to boost your savings and reduce the income tax you pay on your salary. But it can be hard to decide what qualifies for salary sacrifice. Generally, anything that relates to work-related expenses or superannuation contributions is eligible for salary sacrifice. For example, pension contributions, cycle-to-work schemes and cars are among the most common items to be salary sacrificed. This then ensures that you pay less tax and national insurance contributions and receive a non-cash benefit.

What Is A Pension Salary Sacrifice?

Pension salary sacrifice is an arrangement between you and your employer where you agree to forgo part of your salary in exchange for an additional pension contribution from your employer. It’s a way to save money on taxes and increase your retirement savings simultaneously.

How Do I Know If My Pension Is A Salary Sacrifice?

If your pension contributions are salary sacrificed, there will be a salary sacrifice column on your payslip. This will clearly show your contributions to your pension pot and your employers as part of a workplace pension scheme. Pension contributions are a common type of salary sacrifice.

Can An Employer Refuse Salary Sacrifice?

As an employer, you can refuse a salary sacrifice scheme as you are not obliged to offer them to your employees. However, they can be a great way to reduce your national insurance and employee pension contributions.

Can You Salary Sacrifice Statutory Maternity Pay?

SMP cannot be sacrificed or offset against other benefits. Pension contributions, cycle-to-work schemes, and vehicles are examples of things that can be salary sacrificed.