SALARY SACRIFICE CAR LEASING SCHEME

What is Salary Sacrifice?

  • Salary sacrifice means “sacrificing” or reducing part of an employees’ gross salary in return for a non-cash benefit – in this case, a car
  • The employees’ terms of contract are changed, and an agreement is entered into between the employee and the employer reducing their gross salary in return for their chosen vehicle.
  • Salary sacrifice car leasing can offer both the employee and the employer savings on both income tax and national insurance contributions (NIC)
  • The employee does not own the vehicle, and the responsibility of the car rests with the employer. The employee is therefore subject to benefit-in-kind tax (BIK) similar to a company car, when using a salary sacrifice scheme. This is where the low BIK rate of 2% (up to tax year 24/25) on pure electric vehicle introduces significant financial savings
  • For a fixed monthly amount taken directly from their gross salary, employees can receive a fully electric or hybrid vehicle (less than 75g/km of CO2) vehicle, therefore saving overall on income tax and NIC
  • The scheme supports employers with a sustainability agenda, transitioning to zero emissions by providing your employees with electric vehicles

A salary sacrifice car lease scheme in the UK offers both your business and your employees very significant savings and is a fantastic benefit to recruit and retain your best people. 

It also contributes to your Environmental, Social and Governance (ESG) responsibilities, as by offering fully electric cars and hybrid vehicles with less than 75g/km of CO2 and low benefit-in-kind tax, your business is supporting sustainability and the transition to zero emission vehicles.

Why Consider A Salary Sacrifice Scheme?

Businesses save on employer national insurance contributions

Example illustration: An SME of 40 people offers a salary sacrifice electric car scheme and 10 employees take up the scheme. The electric vehicles they choose are three Cupra Born, four Tesla Model 3 RWD and three Tesla Model Y. The business saves over £34,500 in employer national insurance contributions over a 3 year period.

Terms and Conditions apply. Illustrative example only. Prices and therefore employer savings are subject to change and dependent on, but not limited to, number of participants in the scheme, vehicles chosen, vehicle availability and monthly salary sacrifice costs. Please ask for further details or bespoke quotations.

Contact our Fleet and Business Team Advisers today


WHAT ARE THE BENEFITS FOR THE EMPLOYER?

  • Financial savings on employer National Insurance Contributions
  • No need to provide consumer credit to your employees
  • Great staff benefit – helps to recruit and retain your best talent
  • Improves your Environment, Social & Governance (ESG) and sustainability credentials through the switch to zero emission electric vehicles
  • Safety and security of your employees – reduces the “grey fleet” risk by ensuring cars driven on company business are fully maintained and insured
  • Low risk - managed through the setup of your individual salary sacrifice lease car scheme
  • Synergy offers a “white glove” approach, meaning we can tailor your scheme to meet your business’ requirements

WHAT ARE THE BENEFITS FOR YOUR EMPLOYEES?

  • Drive a fully electric vehicle or hybrid vehicle (less than 75g/km of CO2)
  • Full maintenance and breakdown cover
  • Road tax included
  • Insurance cover– provided by employer or arranged separately
  • Save on income tax and national insurance contributions
  • Low benefit-in-kind tax on electric cars and hybrid vehicles
  • Benefit from Synergy’s purchasing power and take advantage of fleet discounts - offering additional significant savings
  • No up-front payment – fixed monthly rental
  • No credit checks
  • Drive a brand-new vehicle for 2, 3 or 4 years and simply hand it back
  • Flexible contract terms – choose your mileage and contract length
  • Choose from a wide range of vehicles to suit individual needs

How Much Will A Salary Sacrifice Car Lease Cost?

Click here to read about the cost associated with car leasing a vehicle using the salary sacrifice scheme. 


Employer Frequently Asked Questions

If you're an employer, you may have a lot of questions surrounding salary sacrifice car leasing schemes and how these will affect your business. Click here to read our employer FAQs. 


Employee Frequently Asked Questions

We've pulled together the most frequently asked questions by employees on salary sacrifice car leasing schemes. Click here to read our employee FAQs. 


 

OUR BEST ELECTRIC LEASE DEALS

Click here to check out our best electric lease deals to get an idea of EVs available in the current marketplace, then contact our Business and Fleet Team for your bespoke salary sacrifice quotations.


SALARY SACRIFICE ELECTRIC VEHICLES

Click here to see what vehicles are on offer through our Salary Sacrifice car leasing scheme. To get an accurate quote and to find your perfect salary sacrifice car deals, contact our Business and Fleet Team today.


For an accurate quote, please speak with our team today to see how we can help your business and reward your employees.

Contact our Fleet and Business Team Advisers today