SALARY SACRIFICE

FAQ'S

Q.   What is Salary Sacrifice?

A.

Salary sacrifice involves a reduction in your monthly gross basic salary in return for a brand new insured, maintained and taxed Ultra Low Emission Company Car for a period of 2 or 3 years. (NB Insurance is determined by each employer).

Q.   What are the benefits?

A.

The benefits include: -

  • Exclusive use of a brand-new insured, maintained and taxed Ultra Low Emission Vehicle
  • Reduced employee tax and National Insurance Contributions (NIC)
  • Access to large fleet discounts
  • No credit checks to undergo
  • No deposit
  • As the cost of the car is taken from gross salary, you will pay less income tax and NIC

Q.   What about my Net Pay?

A.

When you order your vehicle through the on-line ordering platform, you will be provided with indicative Gross Salary Sacrifice and Net Salary Sacrifice figures. The Gross Salary Sacrifice value should not change but it is subject to your employer’s approval. The Net Salary Sacrifice figure includes an average deduction for Benefit in Kind Tax over the period of the contract which is subject to changes in legislation, P11d value and CO2 rating upon delivery. It can also be affected by marginal tax rates.

Q.   Do I pay Benefit in Kind Tax on the car?

A.

Yes, you will pay BIK tax on the car. This cost is included within the indicative Net Salary Sacrifice figure that you will see on the on-line ordering system and the whole concept of having an ULEV or EV is that the BIK will be very low.

Q.   What is included within the Scheme?

A.

The following is included: -

  • Full and exclusive use of the car for the full agreed period
  • Fully comprehensive insurance for business and private use (subject to employer’s agreement)
  • Breakdown cover
  • Road tax & Maintenance (including tyres, brakes and servicing)

Q.   What happens at the end of the contract?

A.

At the end of the lease, you will be required to return the vehicle to Grosvenor. If you would like to keep the vehicle beyond the original lease expiry date, please contact Grosvenor who will consider this. Should you wish to replace your vehicle with a new Salary Sacrifice vehicle, we encourage you to contact your manager at least 4 months before your contract is due to expire in order for them to confirm your eligibility to continue in the Scheme. If you subsequently order a new replacement vehicle through the Salary Sacrifice Scheme, Grosvenor will endeavour to ensure that the delivery of your new vehicle coincides with the collection of your existing vehicle. Once your old vehicle has been returned, any damages or excess mileage charges will be due from you.

Q.   Can I buy my car at the end of the Lease?

A.

Yes, if you are interested in purchasing your car at the end of the Lease, please contact Grosvenor who will be able to provide you with a Price to Purchase. It may also be possible for you to buy the car prior to the end of the Lease should this be of interest to you.

Q.   What other costs could I incur?

A.

The following is NOT included: -

  • Fuel, though you may be reimbursed for fuel for business mileage in line with your car policy
  • Fines, including a £12 administration fee (inc VAT)
  • Insurance policy excess charges where you are involved in an ‘at fault’ incident
  • Damage to windscreens or other glass that may not be covered by the insurance policy
  • Repairs due to damage caused by your negligence, not covered by insurance or considered fair wear and tear during the term of the agreement (including damaged tyres)
  • Repairs at the end of the term to ensure the vehicle is returned with only minimal damage in line with the BVRLA fair wear and tear guidelines
  • Excess mileage charges where you have exceeded the agreed contract mileage and have not sought to amend the agreement and salary sacrifice during the term of usage

GET IN TOUCH
Call us today on 01536 536 536

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.
BUSINESSES

SALARY SACRIFICE

BENEFITS TO DRIVERS

Salary sacrifice of an ultra-low emission or electric vehicle brings an extensive range of benefits to employees.
DRIVERS

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