Salary Sacrifice Explained

What is Salary Sacrifice and how does it work?

Salary Sacrifice is an employee benefit that allows employee's to ‘sacrifice’ some of their salary in return for a brand new, company leased car. Because the deduction comes out of the employee’s ‘gross’ salary, the Employee will pay reduced National Insurance and Income Tax while covering the total cost of the lease (meaning there is no cost to the business). This allows them to lease a brand new car and save money at the same time!

Example savings with Salary Sacrifice

Here are some examples of popular cars taken on a Salary Sacrifice scheme and the savings for an employee.