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

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