Key2Lease Salary Sacrifice Car Leasing
Discover how our salary sacrifice scheme can help you and your employees save up to 60% on electric car leasing, all while supporting your company's sustainability goals.?
What Is a Salary Sacrifice Car Scheme?
A salary sacrifice car scheme allows employees to exchange a portion of their gross salary for a brand-new leased vehicle. This arrangement reduces both Income Tax and National Insurance contributions, making it more cost-effective than traditional personal leasing options. Opting for electric vehicles (EVs) amplifies these savings due to lower Benefit-in-Kind (BIK) tax rates.
Benefits for Employers
- Cost-Neutral Implementation: No setup fees or ongoing management costs.
- National Insurance Savings: Reduced employer NICs and the ability to reclaim up to 50% VAT on lease payments and 100% on maintenance services.
- Streamlined Administration: We handle everything from credit applications to vehicle delivery and ongoing support.
- Customizable Options: Tailor the scheme to fit your company's needs, including vehicle type, emission levels, and contract terms.
- Sustainability Goals: Promote your Environmental, Social, and Governance (ESG) initiatives by encouraging electric vehicle adoption.
- Grey Fleet Management: Enhance duty of care by reducing reliance on employee-owned vehicles for business use.
Benefits for Employees
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Significant Savings: Save between 30% and 60% on leasing costs compared to personal contracts.
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All-Inclusive Package: One monthly payment covers the lease, maintenance, servicing, tyre replacement, roadside assistance, and road tax.
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Tax Efficiency: Payments are deducted from gross salary, leading to substantial Income Tax and National Insurance savings.
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Low BIK Rates: Electric vehicles benefit from a BIK rate of just 2% until April 2025, making them an attractive option.
Example: MG 4 Hatchback 125kW SE EV 51kWh 5dr Auto
For a 20% Taxpayer:
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Gross Monthly Salary Sacrifice: £433.68
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Income Tax Saving: £86.74
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National Insurance Saving: £52.04
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Benefit-in-Kind (BIK) Payable: £9.16
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Net Salary Reduction: £304.06
For a 40% Taxpayer:
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Gross Monthly Salary Sacrifice: £433.68
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Income Tax Saving: £173.47
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National Insurance Saving: £8.67
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Benefit-in-Kind (BIK) Payable: £18.32
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Net Salary Reduction: £269.86
Based on a 36-month lease, 10,000 miles per year, and maintenance included.
How it works
Choose a Vehicle
Employees select their preferred car and receive a tailored quote.
Approval & Agreement
Employer and employee approve the order. The employee signs a contract addendum.
Order & Lease Setup
The vehicle is ordered, and the employer signs the lease agreement. Delivery is scheduled.
Delivery & Support
The car is delivered, salary deductions begin, and ongoing support is provided.
Get Started Today
Interested in offering a cost-effective, environmentally friendly benefit to your employees? Contact the Key2Lease team to learn more about our salary sacrifice car leasing scheme.
- Phone: 01522 440440
- Email: sales@key2lease.co.uk
Empower your workforce with sustainable driving solutions while achieving significant savings.