What is a salary sacrifice scheme & how does it work?
Salary sacrifice is an arrangement employers may make available to employees which is a cost-neutral option for companies who want to offer their employees a car. The employer finances the car through payroll deductions, effectively reducing the employee’s gross salary, while taking advantage of a business’s right to deducted VAT and reduced social security contributions, resulting in savings for both the employer and employee.
Benefits to the employer
- Lower National Insurance Contributions
- An attractive benefit to incentivise recruits
- Aids in employee satisfaction and retention
- Demonstrates corporate social responsibility & climate commitment
Benefits to the employee
- Fund a lease vehicle for much cheaper due to tax saving
- Lower National Insurance Contributions
- Car insurance is included
- No credit checks as the contract is between the finance company and your employer
Want to learn more about salary sacrifice? Get in touch with us us at hello@vehicleconsulting.com or speak to the team on 0344 875 0011 or contact your Vehicle Consulting account manager directly.
