Salary Sacrifice

Take advantage of deducted VAT to save on NI contributions and fund lease vehicles for less.

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 or speak to the team on 0344 875 0011 or contact your Vehicle Consulting account manager directly.

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