How does salary sacrifice work?

Salary sacrifice is a simple and cost-effective way to finance the car you want.

With a salary sacrifice car scheme, you sacrifice a regular amount of your salary – taken before you pay National Insurance and Income Tax. All of your payments are taken from your salary automatically, so you have no extra bills to worry about.

The scheme is classed as a benefit provided by your employer, so you’ll pay Benefit-in-Kind (BiK) tax, but if you choose a brand-new electric vehicle (EV), the BiK tax is only 2% until 2025. Salary Sacrifice is one of the easiest and most affordable ways to drive an EV.

If you’re eligible for the salary sacrifice scheme through your employer, you’ll be able to order a car online in a few easy steps.

Huge tax savings

The salary sacrifice car scheme is offered as a benefit by your employer, helping you save on tax. There’s just one, fixed monthly cost, which is automatically deducted from your pre-tax salary, leaving you with more take-home pay.

Like with any other workplace benefits you might have, you’ll need to pay Benefit-in-Kind (BiK) tax. But the BiK rate for fully electric cars is significantly lower than traditional petrol/diesel cars. Plus, EVs have much lower running costs, making your money go even further.

You can find out more about BiK tax for electric vehicles here.

All-inclusive package

Enjoy all-inclusive driving, with things like road tax*, scheduled service and maintenance, and replacement tyres thrown in. You won’t even need to search for a new car insurance deal every year – we’ve got that covered too and it’s all included in the monthly cost!

No deposit or upfront costs

Unlike personal leasing, there’s no deposit needed when you get your car with salary sacrifice. This makes the scheme an affordable choice compared to the different financing options available or buying a car outright.

Why Choose an Electric Salary Sacrifice Scheme?

Not only can you enjoy tax-efficient driving with an electric vehicle, but you’ll also benefit from lower running costs while reducing your carbon footprint. EVs run on electricity rather than fossil fuels, which means no tailpipe emissions. EV batteries are also recyclable, minimising energy and material consumption on production lines.

• Tax savings when you drive an EV with salary sacrifice
• Zero ULEZ and congestion charges (until 24th December 2025)
• Reduced CO₂ emissions
• Super high-tech car features

Is a salary sacrifice scheme worth it?

Not only does a salary sacrifice car scheme make life easier with an all-inclusive package, but tax and National Insurance savings can be significant.

Electric vehicles are also designed with cutting-edge technology, with everything from advanced navigation and connected infotainment systems to the latest safety features. This makes EVs a popular choice for anyone who spends a lot of time on the roads. For anyone who is interested in driving a state-of-the-art EV or hybrid, salary sacrifice is one of the most affordable ways to get behind the wheel.

Compared to personal leasing, salary sacrifice leaves you with more take-home pay, and there’s nothing to be paid upfront either, making it a cost-effective way to get a car without a deposit.

*Tax savings are dependent on the prevailing rate of tax and your tax band. Salary sacrifice pricing includes all maintenance and servicing, road tax, insurance, breakdown and recovery, tyres, glass and accident management (but excludes manufacturer price increases or any increases to road tax). You will not own the car. Subject to Minimum Wage Check. T&Cs and exclusions apply, check your scheme policy for details.