Welcome to the Employee Zone at Fleet Evolution. Here we’ll explain everything you can expect when opting into a salary sacrifice car scheme.
The basic principle is simple. You choose a car provided by your employer and then ‘sacrifice’ part of your salary to fund it. This means that you’ll now receive a fully managed company vehicle for a cost-efficient price!
Since your gross salary is now lower, your tax and national insurance contributions will also be significantly reduced. This is similar to a workplace pension scheme as this often consists of salary sacrifice arrangements.
What are the Advantages of a Salary Sacrifice Scheme?
Let’s explore the benefits of a salary sacrifice scheme for employees in more detail:
Access to a Wide Range of Fuel-Efficient Vehicles:
Fleet Evolution is one of the UK’s leading providers of electric car salary sacrifice schemes. Therefore, we know a thing or two about negotiating bulk discounts for our customers. Opting into a salary sacrifice scheme means that you’ll get to choose from a range of amazing electric cars!
No Deposit or Credit Check is Necessary:
When applying for a loan, you’re often subjected to credit checks and large deposits. Here at Fleet Evolution, we don’t require either of these. Because you’ll be paying directly out of your salary each month, we can guarantee payments. Hence why we don’t require a huge upfront deposit.
Reduced Income Tax and National Insurance Contributions
Because your gross salary has been reduced, you’re required to pay less tax and national insurance contributions. This means that you can save more money each month!
All the Perks of a Company Car:
Did you know that you’ll also have access to Driverline as part of your salary sacrifice car scheme? That’s right, whether you need roadside recovery or just service booking, Driverline can help solve all of your queries.
Reduced Fuel Costs
The most obvious benefit of an electric car is the reduced fuel costs. Rather than spending hundreds a month on petrol, you can take comfort in knowing that your electric car will save you up to 45% on motoring costs!
What are the Disadvantages of a Salary Sacrifice Scheme?
When opting in for any salary sacrifice scheme, it is important to be aware of the potential disadvantages that may arise:
Reduced Gross Salary
As the money for your electric car will be taken out of your gross salary, you will have less take-home pay each month. This can potentially impact pension contributions or other pre-existing arrangements already in place. It is important to check with your employer that this scheme is financially viable for you in the long-term.
Pay Tax on the Benefit
You will also have to pay tax on the benefit. HMRC charges P11d benefit-in-kind (BIK) tax. This is reflected in the quote so that you can see the total price of the car + tax. We always recommend cars with lower CO2 (electrics and hybrids), as these work best on the scheme and can often offer the most significant savings.
Long-Term Commitment
When you sign this agreement, you are committing to a 2,3 or 4-year deal. If you move employers, you may be asked to take the car personally.
Am I Eligible for a Salary Sacrifice Scheme?
You must meet the following criteria to qualify for a salary sacrifice arrangement:
- Over the age of 21
- Worked at the company for 6+ Months
- Your salary will not fall below the national minimum wage during monthly payments.
- You must have had a full driving licence for 6+ months, with no more than 6 points on your license.
For more information, you can view our salary sacrifice guide or, please get in touch with one of our customer service professionals. We can help you decide if a salary sacrifice electric car scheme is right for you with your current circumstances. We’ll provide a quote and find out how much money you could save each month by switching to an electric vehicle! With our competitive rates, fantastic customer service and excellent discounts, you’re sure to get the best deal possible. Request your free quote here!
Related Article – Salary Sacrifice For Employers