What is car salary sacrifice?
The basic principle is a simple one. You choose a car to be provided by your employer as part of your package. You then ‘sacrifice’ part of your salary to fund the vehicle. This means that you can benefit from a fully managed company vehicle at a very cost-efficient price which includes everything but fuel.
So, what are the advantages?
- Access to a wide range of fuel efficient vehicles at negotiated bulk discounts utilising your employers and Fleet Evolutions buying power.
- A fully managed vehicle, all you need to do is add the fuel
- No deposit or credit check necessary
- Deductions are from your gross pay so you’re saving on tax and NI
- All of the perks of a company car including a Driverline for any issues from service booking to roadside recovery
- Brand new vehicles are much more fuel efficient and this (whether traditional petrol or electric), will save money.
By sourcing vehicles through us you could potentially save up to 45% on motoring when compared to retail. Best of all, you don’t have to worry about haggling during the order process, we’ll do it all for you! We can deliver the vehicle to your place of work or home for a time that’s convenient for you and arrange picking it up for servicing work.
What are the disadvantages?
You will be reducing your gross salary with Salary Sacrifice. Depending on how your employer represents this, it could have an impact on other things such as your pension contribution or benefits. Each scheme varies so it’s always best to check before placing a final order.
You will also have to pay tax on the benefit. HMRC charge P11d benefit-in-kind (BIK) tax. This is reflected in the quote so that you can see the full price of the car + tax. We always try an recommend cars with lower CO2 (electrics and hybrids), as these work best on the scheme and can often offer the biggest savings.
When you sign for a car, you are committing to a 2,3 or 4-year deal. If you move employers, you may be asked to take the car on personally.