Britannia Car Leasing’s salary sacrifice electric car scheme provides a tax-efficient way for employees to access new electric vehicles while enjoying significant savings on both income tax and National Insurance.
Salary Sacrifice Tax Benefits
When you participate in our salary sacrifice scheme, you agree to give up a portion of your gross annual salary in exchanged for a brand new leased car.
Reduced Taxable Income:
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- The sacrificed portion of the salary is deducted before income tax is applied, effectively lowering the employee’s taxable income. This results in paying less income tax overall.
National Insurance Savings:
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- Similarly, the reduction in gross salary also leads to lower National Insurance contributions. Employees save on these contributions as they are calculated on the reduced salary.
Inclusive Costs:
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- The scheme often includes maintenance, servicing, and insurance within the monthly payments, which are also taken from the pre-tax salary. This further enhances the financial benefits by reducing out-of-pocket expenses.
Environmental and Cost Benefits:
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- Employees can choose from a range of electric vehicles, which can lead to additional savings on fuel and lower Benefit-in-Kind (BIK) tax rates for eco-friendly vehicles.
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.