Salary Sacrifice

Salary sacrifice in car terms is a highly cost effective benefit to employees and enables particularly cost effective car use. Similar to other salary sacrifice schemes the employee benefits from savings in paye, NI and vat, which although gives rise to BIK tax on car, this is still a major benefit if car is eco friendly. Schemes are so cost effective, many fleets are replacing existing arrangements with new salary sacrifice over entire company car and ‘opted out' fleet.

"A salary sacrifice happens when an employee gives up the right to receive part of the cash pay due under his or her contract of employment. Usually the sacrifice is made in return for the employer's agreement to provide the employee with some form of non-cash benefit. The ‘sacrifice' is achieved by varying the employee's terms and conditions of employment relating to pay"

HM Revenue and Customs

Salary Sacrifice in brief:

• Employee benefits from up to 40% saving on new car by reducing salary in return for company car.
• Savings are derived from National Insurance, PAYE and VAT tax savings as well as better buying power. This is achieved keeping costs to company neutral
• Employee does have to pay BIK tax which is minimised by choice of eco friendly car.
• Cars are fully maintained, insured and taxed.
• Major benefit remains.

Scheme Process Flow:

1. Employee Visits specialist website - evaluates cars & costs
2. Employee contact AutoEase via online template or Phone
3. AutoEase provide official quotation
4. Driver obtains final sign off by manager
5. Car ordered
6. Vehicle Delivered
7. Tax office advised & salary adjusted

For more details please contact our sales team and lets advise how we can help. Call 0845 308 2520