Salary
Sacrifice Cars
Salary Sacrifice cars allow your employees to give up some gross pay in return for a brand new Electric Vehicle (EV). The employee saves on income tax and National Insurance Contributions (NICs), making the vehicle cheaper for them - whilst you’ll be saving on NICs too, it’s a win-win.
Video: Salary Sacrifice Cars Explained
31.12 Sec
Start your business journey to net zero, and provide a cost-effective way for your employees to drive an Electric Vehicle.
Benefits of Salary Sacrifice Cars
Boost Your
Employee Benefits
Generate
Savings
Simply Charge
and Go
How Salary Sacrifice Cars Work
Employees choose a vehicle
Selection, ordering and delivery all managed on the CBS Portal.
Vehicle leased to your business
Rental includes maintenance, insurance can be added.
Employees salary sacrifice
Tax and NIC savings for your employees, and at least cost neutral for you.
Easy renewal process
At the end of term, employees can choose a brand new car.
Employee Benefits
Keep your employees happy by delivering a premium benefit, helping you to attract new talent and retain the best staff.
We’ll help and support you throughout the duration of your fleet contract.
Breakdown Support & Tyres
Service, Maintenance & MOT
Fines & Charges Management
Windscreens
Replacement Vehicle
Driver Dedicated Helpdesk
Let’s Talk Tax
Are Salary Sacrifice Cars Right For You?
Remember, our Salary Sacrifice Cars can be one part of your overall solution alongside our other products, creating a blended car benefit package.
Discover all our solutions for employee car benefits.
- You want to offer an optional car benefit to some or all staff.
- You would like to boost your green credentials.
- Your employees are ready to make the switch to electric.
- You are happy to complete some admin on P11D reporting and National Minimum Wage checks.
A salary sacrifice arrangement is a formal agreement under which an employee accepts that with effect from a set date, they’ll receive a lower taxable salary in exchange for a benefit. In this case, the benefit is a car. The employee receives less gross salary but they save the tax and National Insurance that would ordinarily be due on this salary. The salary they give up is used to cover the lease costs of their chosen vehicle, sometimes including insurance and maintenance.
Electric Vehicles are the most efficient cars for salary sacrifice schemes, however, you can choose to include Ultra Low Emitting Vehicles (ULEVs) to expand the choice of cars available to your employees.
It’s recommended that your employees notify HMRC that they’re driving a company car, or when they change their company car so that they can update their records and tax code without delay. They can update HMRC online here, by downloading the HMRC app or calling on 0300 200 3300.
Tax for your employees and National Insurance Contributions (NICs) for the business will be taken after the salary sacrifice deduction, making savings for both parties.
Get in Touch
Got a question? Want to know more about how we can help? Simply fill out the form and we’ll be in touch.
All Done
We’ll be in touch soon.
