Salary sacrifice is a scheme that allows you to allocate a portion of your pre-tax and National Insurance income to pay for a brand-new leased vehicle. By doing so, you can lower your Income Tax and National Insurance contributions, making this a cost-effective alternative to personally leasing the same vehicle.
The savings are even more substantial when you choose to lease a full electric vehicle.
Once the employer sets up and rolls out the scheme, its all very straightforward…
With Liquid Fleet, you can confidently provide your team with a seamless electric car leasing solution.
By partnering with Liquid Fleet, employers can offer electric vehicles to employees as a valuable benefit. The cost is covered through a salary sacrifice arrangement, ensuring a hassle-free setup while supporting sustainability goals.
Drive Your Electric Dream Car
Liquid Fleet makes it easy for employees to get an electric car as part of their benefits package.
Here’s how it works:
-The employer provides the car, and the employee contributes through a simple salary sacrifice.
-Because the sacrifice is taken from the gross salary, its not taxable – saving employees 30-60% on the cost of their electric car.
Significant Savings: Employees save thousands of pounds by paying before tax.
Effortless Payrolls Adjustments: We handle everything so employers can recoup costs directly through payroll.
Sustainability Made Simple: Employers and employees alike enjoy the benefits of going electric while reducing carbon footprints.
Register your interest to have one of our dedicated salary sacrifice experts give you a call!
Is the Scheme Compulsory?
No, the participation in the scheme is entirely voluntary. It is available to all eligible employees who meet the following criteria:
• Your gross basic pay must remain above the applicable National Minimum Wage or National Living Wage after the salary sacrifice deduction
• You must have held a full UK or EU driving licence for at least 12 months
• You must be a permanent PAYE employee, employed for a minimum of 6 months, and have completed your probationary period.
• You must have not resigned, be at risk of redundancy, or be due to retire before or during the lease period
• You must not be on long-term absence due to illness or leave
• You must meet the eligibility criteria of the vehicle insurer, such as requirements for age, claims history, and driving convictions
Where can I find more information?
We understand you may have additional questions or concerns, which is why our team is always on hand to help.
Alternatively you can find detailed information about salary sacrifice arrangements on HMRC’s website. Additionally, you may wish to seek external advice.
