Salary Sacrifice Car Scheme
Salary sacrifice is a fantastic benefit to businesses and employees allowing them to 'sacrifice' some of their salary for a brand-new, leased car at no cost to the employer. It's simple to get started, if you are an employer, sign up with our team to get going. If you are an employee, your company must be signed up first, it is quick, simple, and free! Want more information? Download a free guide.
What is a salary sacrifice car scheme?
A salary sacrifice scheme is a voluntary arrangement in which an employee agrees to give up a portion of their gross salary in exchange for certain non-cash benefits or perks offered by their employer.
Our salary sacrifice is a fantastic employee benefit that allows them to 'sacrifice' some of their salary, in return for a brand-new, company leased car.
An employee can lease a car with the funds taken from your salary before Income Tax and National Insurance are paid. This means that your salary appears to be smaller, effectively saving money as you will have to pay less tax.
This is an approved Government scheme.
Getting started with the scheme couldn't be simpler. If you are an employer, you can fill out our form, once submitted our team will be in touch to discuss the scheme.
If you are an employee, you need to refer your company. Once referred, we can contact your referral to get started.
We will require some basic information such as your company name, approximate number of employees and your contact details. We can then get the process started and help you make the step to improving your company benefits
Employer? Set up a scheme
Retain top staff and save up to 40% on a new electric car with our salary sacrifice scheme. It's easy and free to get started. Fill out your details and our team will be in touch with you to discuss the scheme.
Employee? Refer your employer
Unlock massive discounts on a brand new electric vehicle when you refer your employer. Once they sign up to our salary sacrifice scheme, you will be able to take advantage of our exclusive deals.
Free Guide to Salary Sacrifice
Are you looking for more information to keep hold of or to share with your employees or employer? Download our free guide to unlock all the relevant information you require to getting started with salary sacrifice.
Step 1: Sign Up
If you haven't already, sign up to our Salary Sacrifice Scheme, or refer your employer. It's completely free and easy to sign up. Get started today.
Step 2: Choose Your Car
Once you and your employer have signed up, the fun begins! It's time to choose your car. If your employer has a fixed criteria (such as EVs only), we can work with you and help find your brand new car.
Step 3: Delivery
Since all the payments are taken directly through your salary, you don't need to worry about anything else. Simply take delivery and start to enjoy your new car.
Employer? More Information
Employee? More Information
MG4 Salary Sacrifice Example Rates
|
Annual Salary |
Estimated Net Salary Reduction |
| £40,000 |
£243.51 |
| £70,000 | £208.09 |
| £120,000 | £143.22 |
The above figures are estimated net salary reductions based on example annual salary rates. For an accurate quote, get in touch with our salary sacrifice team who will be on hand to give you accurate quotes based on your true income.
| Feature | Figures |
| Total Monthly Salary Sacrificed: | £324.31 inc VAT |
| Employee income Tax Savings: | £129.72 |
| Benefit in Kind Payable by Employee: | £19.99 |
| Employee National Insurance Saving: | £6.49 |
| Total Estimated Net Salary Reduction: | £208.09 |
Figures are based on £70,000 annual salary and are purely example rates only. For a bespoke quote, ask our team for details. Term based on 1+35, 5,000 miles per annum.
Get in Touch We're here to help
Salary Sacrifice FAQs
Salary sacrifice is an employee benefit scheme that allows you to lease a car out of your gross monthly pay. This payment comes our before any tax meaning it reduces your salary and in turn lowers your income tax and national insurance payments too.
If you are an employer, you have to sign up with our salary sacrifice scheme. Once you are signed up, we can start to help your business and employees out. Fill out the form with some basic information and our specialists will be touch to help you get started.
Any salary "sacrificed" through the scheme is taken to cover the cost of the lease. It is taken from your gross monthly pay, meaning it is taken before you pay any tax or national insurance. This reduces your overall salary and reduces any income tax and national insurance payments.
Regardless of status or job role, our salary sacrifice scheme is available to all employees. The only requirement is that the individuals salary is at least national minimum wage after any deductions.
For a business:
- Tailored to your company requirements allowing you to limit employee choice such as to low or zero emission vehicles only.
- Grey fleet reduction.
- EVs can assist your green agenda and deliver on environmental, social, and Governance (ESG) and Corporate Social Responsibility (CSR).
- Vehicles are transferrable if an employee leaves the company*.
For employees:
- Tax and National Insurance savings.
- Low Benefit in Kind (BiK) for electric vehicles.
- No deposit required.
- No personal credit checks.
- A brand new car every 2, 3, or 4 years.
Benefit in Kind, also known as BiK is a form of tax payable on any non-cash benefits that you provide for your employee. Currently, BiK is capped at 2% on electric vehicles until 2025, rising by only 1% until 2028.
Of course! Our annual mileages start from 5,000 miles per annum but this can easily be increased depending on your requirements. For higher-mileage customers, we can quote up to 30,000 miles per annum.
The good news is that salary sacrifice vehicles are transferable. This means that a vehicle can be transferred to an employees new employer if they are part of the scheme. For employers, the vehicle can also be transferred to another employee within your company.
Getting setup with the salary sacrifice scheme is easy! Fill out the form available with some basic details such as the approximate number of employees, general company information, and your contact details. Our team will then be in touch to help get the process started.
Please note that the answers to these questions may vary depending on your specific employment contract and company policies. It's advisable to consult with your employer's HR department or a financial advisor for personalised information related to salary sacrifice in your particular situation.