FAQs

Salary sacrifice FAQS

26 / 06 / 2024

Everything you need to know about salary sacrifice car schemes

If you’re eligible for a salary sacrifice car scheme within your organisation. Check out our salary sacrifice frequently asked questions (FAQs) below.

About the sceme

Salary sacrifice is where you give up part of your salary in return for a non-cash benefit (in this case a car). This means that the cost of the car is covered by a reduction in your gross basic pay before Income tax and National Insurance are deducted. The amount of pay given will not be subject to these deductions. You will be required to pay Benefit-in-Kind (BiK) tax on the value of the benefit.

 

If you choose an electric vehicle, you’ll benefit from our fantastic deals thanks to our buying power and lower running costs. This means you’ll get a brand-new car with no upfront payments and with salary sacrifice, you can save on BiK tax should you choose an EV. That can add up to thousands over the length of your vehicle term*.

The scheme is a hassle-free all-inclusive package, which includes:

  • A brand-new electric or hybrid vehicle
  • Fully comp insurance
  • Road tax
  • Servicing and maintenance
  • Breakdown, windscreen and tyre cover
  • Accident management.

As well as the all-inclusive package, you’ll benefit from: a smooth ordering journey with no deposit or credit checks, National Insurance and tax savings and having a team of experts on hand to support you every mile along the way.

No, these are based on your gross basic salary before any deductions.

The scheme is open to UK employees who:

  • are on a permanent contract of employment
  • are not on an inbound international assignment to the UK
  • have sufficient salary from which to sacrifice the amount required for the chosen car (note that you cannot sacrifice your salary below the level of the National Minimum Wage)
  • meet the insurance eligibility criteria that can be found in the insurance section of the scheme policy
  • have a valid driving licence
  • are not on notice of redundancy or serving notice

Other company specific rules may apply e.g., tenure. Always refer to your employer’s policy

It’s best to do your research in order to select the right electric vehicle for your lifestyle (check out our handy guide to help with this). The driving range varies between models, and can also be impacted by driving style, weather conditions, and the use of other features that draw power from the battery (get clued up on how to keep your EV battery healthy). So, it’s important to take into account not only the manufacturer’s advertised range, but also the range you can expect in the real world. This way, you can make sure your chosen vehicle meets both your work and personal needs. Still unsure? Our EV gurus are here to help.

Quoting and ordering

The delivery timeline of your order will vary depending on the model you choose. We understand that this can be a source of frustration and we’ll always keep you informed of the expected delivery date.

Usually yes! You will benefit from National Insurance and Income tax savings on the salary sacrifice deduction (with additional potential tax benefits if you select a ULEV**) which are only available via a salary sacrifice car scheme.

There’s a wide range of cars to choose from. We negotiate the best deals on thousands of cars, directly with the manufacturers so you get the best deal – saving you time, money and hassle. Always refer to your employer’s policy.

In order to give employees the widest choice possible, there are typically no restrictions based on vehicle manufacturer or emissions. Always refer to your employer’s policy.

The salary sacrifice arrangement will begin in the month following delivery of the vehicle and will continue for 24, 36 or 48 months (employer specific) depending on your salary sacrifice period.

Zenith are unable to offer test drives directly. However, you can reach out to your local dealership, who will be able to support with a test drive of your chosen vehicle on our scheme.

Zenith will track the progress of your order and keep you updated by email regarding any changes to the delivery date.

As soon as the vehicle is available the respective dealership will contact you directly to arrange delivery.

Yes, however if you wish to cancel you may be charged. Please refer to your employer’s policy.

No – the vehicle is leased to your employer for a fixed term and classed as a company vehicle. Payment of an initial deposit would not be efficient from an Income Tax and National Insurance perspective.

Managing my vehicle

In the event of a problem or breakdown, contact Zenith.

If your vehicle manufacturer has provided breakdown cover, you will be referred to the manufacturer directly. The terms of their breakdown cover will vary, and you should contact the manufacturer for more information and confirmation of what is covered.

If your vehicle does not have manufacturer cover, you will be covered by Zenith’s breakdown cover. Zenith’s cover provides the following:

Roadside assistance: If the vehicle has broken down and can’t be fixed at the roadside, you and your passengers will either be taken to our choice of repairer or your local destination of choice, whichever is closer.

At home: If your vehicle does not start at your home address.

National recovery: If the vehicle cannot be fixed at the roadside, our provider will arrange recovery for you and passengers to any single location of your choice in the UK.

If a callout is required because of employee negligence, the cost of the callout will be recharged to your employer. Your employer will recover the cost from you via a payroll deduction.

Where a recovery is needed because of an accident, the cost will be recharged as part of the accident claim. If the vehicle is not repairable at the roadside, the employee and other occupants will be transferred to your home address and the vehicle taken to a local garage/body shop as appropriate.

If your car is undergoing maintenance work covered by warranty, you can request a courtesy car from the manufacturer, depending on availability. However, it is not a like for like replacement. If bodywork repairs are necessary, you may request a courtesy car from the repairer, depending on availability. Again, it is not a like for like replacement. If the garage or bodyshop do not have a courtesy car available, you will have to arrange your own replacement vehicle at your own expense, as onward mobility is not included in the salary sacrifice scheme. Please refer to your employer’s policy for more information. Please note, payment remains due even when your car is off the road.

Before signing off on the delivery of your vehicle, it is essential to make sure that it matches your order in terms of specifications. If any discrepancies are noticed, you must immediately alert the delivery agent and contact Zenith.

Once you have accepted the delivery of the vehicle, we’re still here to help, but any problems with your specification are harder to resolve after you’ve signed for the vehicle so make sure you use our delivery checklist to ensure your brand-new car is as you expect.

No, you’ll choose from several annual mileages ranging from 5,000 to 40,000 miles per annum.

You will need to estimate your annual mileage during the vehicle ordering stage. Here it will indicate how much excess mileage will cost you per mile.

Please contact Zenith to request an adjustment should you find that you drive more or less than estimated.

If the vehicle is returned with more than the selected mileage you will be liable for an excess mileage charge.

When you join the salary sacrifice scheme, you commit to taking the car for the chosen period and will be liable for early termination charges. Please refer to your employer’s policy.

On resigning you must call Zenith immediately who will advise you of your options to either return or keep the vehicle.

If you take maternity, paternity, adoption or shared parental/adoption leave, long term sickness or unpaid leave, participation in the scheme is still accepted. However, it’s always best to check your employer’s scheme policy for any specific information relevant to you regarding deductions and salary sacrifice arrangements, as the rules and policies differ depending on the type of leave you are planning to take.

Employees can choose from the following:

  • Return the vehicle and ‘opt out’ of the scheme
  • Return the vehicle and take another through the scheme
  • Purchase the vehicle for market value.

If you’re eligible for a salary sacrifice scheme, please refer to the salary sacrifice car scheme policy for more information.

Before taking the car abroad you will need to request overseas travel documents from Zenith. Please contact your dedicated driver team at least two weeks before your travel date and we will get your documents out to you.

Zenith is not able to transfer Bus Lane Charges, Congestion Charge Penalties, Penalty Charge Notices or Parking Fines to the driver of the vehicle. All fines that are not a “Notice of Intent to Prosecute (NOIP)” will be paid and recharged to you plus an admin fee.

Any fines served directly onto the vehicle (for example fixed to the windscreen) must be paid by you directly. Failure to pay these fines will mean they are sent to Zenith as the registered keeper. Upon receipt, Zenith will pay the fine and it will be recharged to you plus an admin fee.

NOIP transfers (speeding fine etc) will be transferred to the driver of the vehicle at the address we hold for the vehicle in our system. The issuing authority will then contact you directly. Zenith will not charge an admin fee for this type of transfer.

The legal bits

We will only use your personal data when it is necessary for our legitimate interests or when we are required to do so by law. We may use your personal data to:

  • Provide and manage our services;
  • Process payments;
  • Verify your identity;
  • Monitor and improve our services;
  • Comply with legal and regulatory obligations;
  • Prevent, detect and investigate fraud, money laundering and other criminal activities.

You can find more information in our Privacy Policy.

Our goal is to offer outstanding customer service, but we also understand sometimes things go wrong. If you want to make a complaint, please contact us in writing via email providing us with your details (including your name, order number or registration number) and the basis of your complaint. You’ll receive an acknowledgement, and we’ll deal with your complaint fairly and promptly.

You can read our full complaints policy to find out more.

By accessing www.zenith.co.uk and any of our driver websites, you agree to be bound by these terms of use. If you do not accept these terms, please do not use our website.

Stock is any item that can be obtained more quickly than a standard factory order, or any vehicle with a faster delivery time than the industry standard.

This is the amount of time it typically takes for your vehicle to arrive, dependent on the model you choose and is subject to change. We’ll keep you updated on the expected delivery date and do our best to ensure you receive your order as soon as possible.

This is the amount of time it typically takes for your vehicle to arrive, dependent on the model you choose and is subject to change. We’ll keep you updated on the expected delivery date and do our best to ensure you receive your order as soon as possible.

A “Faster delivery” indicator tab is displayed if the estimated delivery time is less than 8 weeks.

Disclaimer

While these FAQs have been prepared with care, in the event of any conflict between your employer’s salary sacrifice car scheme policy document and these FAQs, your employer’s salary sacrifice car scheme policy will take precedence.

*Average saving over the length of the vehicle term when comparing the salary sacrifice car scheme to personal contract hire using the same car and the same vehicle term, annual mileage and driver age and postcode.

**The driver will still have to pay BiK , but the amount you sacrifice from your pay isn’t liable for National Insurance and Income tax and a reduction in CO2 emissions means you’ll be eligible to pay less tax.

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How does salary sacrifice work?

Everyone wins with salary sacrifice from Zenith. Watch our quick video to find out how a salary sacrifice car scheme works.

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How do I find the Zenith car list?

Trying to find the perfect Tesla? Or maybe an Audi or BMW is what you’re looking for? To access our Zenith car list and get a quote for your salary sacrifice or company car, follow these steps...

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Driver booking

Do you drive a Zenith vehicle? Our driver booking form allows you to easily submit a service or MOT request.