SALARY SACRIFICE

Benefits to Businesses

A salary sacrifice scheme is where an employee gives up a portion of their gross salary for a non-cash benefit – in this case a fully funded, maintained and insured car.

By giving up a portion of their gross salary, their income tax and national insurance contributions reduce. They then choose an ultra-low emission or electric vehicle that enjoys very low benefit in kind tax (BIK).

The scheme therefore saves the employee tax and NIC on the salary sacrificed and the employer makes savings by paying significantly lower NI on the ultra-low emission car benefit.

To put this in context, in 2020/21 the company car BIK on a fully electric vehicle (EV) is zero, rising to 1% in 2021/22 and then fixed at 2% 2022 - 2025.

An ultra-low emission / electric car salary sacrifice scheme offers widespread benefits to employers.

  • Full guidance, support and consultation from Grosvenor Leasing in setting up the scheme
  • Class 1a NI savings
  • An additional staff benefit, potentially at no extra cost
  • An enhancement to your overall renumeration package
  • A clever mechanism for reducing your company’s carbon footprint and moving to ULEVs and EVs
  • A perfect option for drivers moving out of the company car scheme
  • The ability to attract and retain staff
  • Avoids the burden associated with Grey Fleet

Enquire

     
 

I would like to opt in to receive marketing communications from:

News & Media

Daily and flexible long-term rental sees surge in demand as lockdown eases

Demand for daily and flexible long-term rental has seen a significant increase as companies ease out of lockdown. With many businesses uncertain as to their vehicle requirements in the coming...

More

Grosvenor Group customers enjoy benefit of market-leading risk management solution

Grosvenor Group customers can benefit from market leading risk management thanks to its growing partnership with Fleet Service...

More

When moving to electric vehicles, many companies focus on whether they will be fit for purpose and enable their business to operate effectively. Take a look at The Grosvenor Group Website for more information... https://t.co/Vf53c8vjNn #fleet #green #greenagenda #environment https://t.co/oiDF88lrA8