莲花直播

Written by Rob Buckland

You can save money and get a hassle-free, all-inclusive car leasing package with a salary sacrifice scheme. But how does the scheme work? What are the tax implications and how exactly do you save money? Read on to find out.

What is a salary sacrifice scheme?

A is a government-backed scheme to allow employees of a company to give up part of their salary in exchange for a non-cash benefit. In this case, that’s an .

With the monthly payment for the car coming out of your pre-tax salary, rather than after tax, you pay less income tax on what you earn. This means you can save a substantial amount on the monthly cost compared to leasing an EV yourself. 

You and your employer will also make lower National Insurance contributions, while salary sacrifice schemes such as 莲花直播 Leasey’s, include things such as insurance, breakdown cover, servicing and maintenance. Your finances are protected by our Early Termination Protection.

What is Benefit-in-Kind tax?

Benefit-in-Kind (or BiK) is a tax paid by employees for non-cash benefits or perks received on top of their salary. Any benefit of monetary value must be treated as taxable income according to HMRC. 

Benefit-in-Kind tax is most commonly applied to company cars for private use. If you have one of these, you need to pay a BiK contribution - often referred to as company car tax. 

Every car fits within a BiK percentage banding. It’s based on the car’s CO2 emissions and P11D value (list price before registration and road tax).

You can calculate the company car tax by multiplying the car’s P11D value by the BiK percentage banding, then multiply that figure by your tax band (20% or 40%). Dividing that figure by 12 gives you your monthly Benefit-in-Kind payment. 

Salary sacrifice cars are classed as company cars, so you’ll need to pay BiK. Happily, because the payment is worked out using CO2 emissions, electric cars benefit from the lowest BiK tax band available - currently just 2% and rising by 1% each year from April 2025 to 2028.

That’s vastly cheaper than traditional petrol or diesel cars, which have bandings of between 20% and 37% depending on emissions. That means you can save hundreds of pounds a month by swapping from a petrol or diesel vehicle to an EV.

Salary sacrifice and tax: how does it work?

So you’ve got the gist of Benefit-in-Kind tax, right? Now let's explain the biggest saving with an such as 莲花直播 Leasey’s.

Salary sacrifice is deducted from your gross pay (pre-tax), which effectively lowers your reported salary. HMRC will tax you based on the reduced amount instead.

Think of it as having a small pay cut - except you get a with the money coming out of your salary. It’s the opposite of something like a company car allowance, which is added to your salary, but then increases your tax burden and National Insurance contributions to reflect that extra money you’re paid. 

Instead, going down the salary sacrifice route means savings on both income tax and National Insurance contributions due to those deductions being applied to a lower figure. It’s a win-win, because your employer pays less towards your National Insurance too.

How much can I save on a salary sacrifice scheme?

Saving money is the name of the game with salary sacrifice. But there’s more to that than just tax savings, because 莲花直播 Leasey’s salary sacrifice package throws in a whole bunch of other benefits too.

Here’s a full breakdown of why a salary sacrifice scheme such as 莲花直播 Leasey’s is a great option for your business: 

Income tax and National Insurance 

As mentioned before, saving on your income tax and National Insurance Contributions is the main reason why salary sacrifice is a great benefit for employees. 

Higher rate (40%) taxpayers will save more than lower rate (20%) taxpayers, but both can benefit from the scheme. Check out our example breakdown below that shows the savings on a popular family EV: 

MG 4

Benefit-in-Kind

Electric cars offer massive savings on Benefit-in-Kind (company car) tax when compared to petrol or diesel cars, and even hybrids. Here’s an example of the savings for both 20% and 40% taxpayers versus an equivalent petrol, diesel and hybrid car - or you can look for youself with our .

Maintenance and breakdown cover

Unlike a regular car lease you won’t need to pay anything towards servicing costs or general maintenance, as we’ll fit replacement wiper blades, brake pads and even tyres for you.

You’ll also get breakdown cover throughout the term of your lease, ensuring you never miss that important meeting or family holiday. 

Insurance

Fully comprehensive insurance is included not just for you, but also additional family members.

Conclusion

To conclude, salary sacrifice schemes are a top-notch perk for employees of your business, offering tax-efficient and hassle-free access to all electric cars on sale in the UK along with an all-inclusive package. 

To find out more about 莲花直播 Leasey’s salary sacrifice scheme, click the link to our .