Salary Sacrifice for Electric and Plug-in Cars
By sacrificing a portion of your salary, you can access a brand-new vehicle with all-inclusive benefits, including insurance, maintenance, and roadside assistance, all whilst saving up to 60%!
Save up to 60% on an EV
Using salary sacrifice for your brand-new car could see you save 30-60%.
EV chargers for home & work
We'll arrange and install your new charger so you can make the most of your new EV.
Brand-new cars
All cars are brand-new and come with a full warranty, breakdown cover, and road tax.
Servicing, maintenance & insurance
The fixed monthly cost includes servicing, maintenance, tyres, and comprehensive insurance.
Online portals for employees & employers
Simply login to your online portal to quote, order, and manage your vehicles.
Early Termination Cover
Stay fully protected in the event the vehicle is no longer required.
I'm an employer
Learn more about the savings and benefits of setting up a Salary Sacrifice Scheme.
How does Salary Sacrifice work?
Employees can exchange a portion of their salary each month for a brand-new car. This amount is deducted before income tax and National Insurance, resulting in employee and company savings. The fixed monthly payment covers road tax, breakdown cover, MOT, maintenance, replacement tyres, and accident assistance. You can even include comprehensive car insurance and an EV charger.
With no upfront payments or deposits required, and early termination cover, employees can customise their new car knowing that all expenses are covered.
How it works...
Employer leases the car
The employee picks the car they want which is leased by the employer. The employer pays for the lease and recoups the cost from the employee's pre-tax salary.
Employee uses the vehicle
The employee will use the vehicle like they would any company car. We'll help with payroll adjustments so their payslips reflect their new salary.
Both parties enjoy the savings
The employee and employer can now enjoy savings on income tax and national insurance contributions. Depending on the employee's salary, they could see up to a 60% saving on a brand-new EV.
Why choose Motorlet's Salary Sacrifice Scheme?
Brand New Electric Cars
Exclusive deals on brand new electric vehicles, delivered to you or your employees.
Servicing & Maintenance
Our scheme covers all routine servicing, maintenance, repairs, and even tyres.
Charging Packages
We'll arrange and install new chargers so you can make the most of your EV.
Full Insurance
Fully comprehensive insurance is included in all of our packages.
Early Termination Cover
No requirement for an EV? Simply hand it back for a reduced fee.
Benefits of Salary Sacrifice
Employee Benefits:
Tax Savings
By exchanging part of your gross salary for a brand-new car, you reduce the amount of employment tax and national insurance.Full Covered Expenses
The fixed monthly cost will cover nearly every cost, including warranty, breakdown cover, maintenance, and even insurance if you opt for it.Access to More
Due to the high savings, you might have access to more expensive and higher-specification vehicles.No Credit Checks
The lease goes through your employer, meaning no credit checks run against the employee.Financial Flexibility
Know exactly how much you're spending every month with no surprises along the way.
Employer benefits:
Saving on NIC
As an employee sacrifices part of their salary, your national insurance contributions will lower.Attractive, Cost-Neutral Benefit
Without costing you a penny, you can offer your employees a fantastic benefit which saves you and them money.Reduction in Tax
Not only are you saving on NIC, but you can also offset costs against your corporation tax bill.Mitigate Risk
Reduce your grey fleet and ensure employees are driving suitable vehicles.Competitive Edge
By 2026, it is estimated that 70% of companies will offer a salary sacrifice scheme to their employees.
Employee frequently asked questions about Salary Sacrifice
How does salary sacrifice benefit me?
A salary sacrifice car scheme allows you to exchange part of your pre-tax salary for a brand-new electric car. This can reduce your taxable income and save you money on tax and National Insurance contributions.
How does salary sacrifice affect my take-home pay?
By sacrificing part of your salary before tax is applied, you will see a reduction in your take-home pay.
Will salary sacrifice impact my pension contributions?
Salary sacrifice does affect your pension contributions, as the sacrificed amount is deducted from your gross salary before pension contributions are calculated.
Are there any downsides to salary sacrifice?
Like anything, there are downsides to salary sacrifice. The main two are you can only get an EV on this scheme and reducing your take-home pay can limit borrowing elsewhere (i.e. mortgages).
Can I opt out of a salary sacrifice scheme once I've joined?
In most cases, employees have the option to opt out of salary sacrifice schemes, although this may vary depending on the specific benefits and employer policies. You should check with your HR department.
How do I set up a salary sacrifice arrangement?
Your employer will provide information and guidance on setting up a salary sacrifice arrangement, including eligibility criteria, available benefits, and the process for opting in or out of the scheme. If they do not have a scheme, get in touch and we can provide you with an employer pack to give to them.
Is salary sacrifice available to all employees?
Salary sacrifice schemes may be available to all employees, but eligibility and participation may vary depending on employer policies.
Employer frequently asked questions about Salary Sacrifice
What is a salary sacrifice car scheme?
A salary sacrifice car scheme allows employees to exchange part of their pre-tax salary for a leased vehicle, typically saving on income tax and National Insurance contributions.
How does a salary sacrifice car scheme benefit my company?
Implementing a salary sacrifice car scheme can reduce employer National Insurance contributions, enhance employee benefits, attract talent, and support environmental sustainability initiatives.
What types of cars can be offered through a salary sacrifice scheme?
Employers can typically offer a wide range of new cars, including electric, hybrid, and low-emission vehicles, through a salary sacrifice scheme, providing employees with choice and flexibility.
What are the eligibility criteria for employees to participate in the scheme?
Eligibility criteria may vary, but typically employees need to have a regular income, be eligible for a company car, and agree to the terms of the salary sacrifice agreement. They also cannot sacrifice an amount which leaves their take-home less than minimum wage.
How does the salary sacrifice car scheme affect payroll and reporting processes?
Implementing a salary sacrifice car scheme may require adjustments to payroll systems and reporting processes to accurately calculate employee salaries, deductions, and benefits. We'll provide you with an online portal where all of this is managed.
Are there any tax implications for my company with a salary sacrifice car scheme?
While salary sacrifice car schemes can result in savings on employer National Insurance contributions, there may be tax implications depending on your company. Please get in touch to find out more about tax implications.
How do I set up a salary sacrifice car scheme for my company?
Get in touch with us and we can set up a salary sacrifice car scheme, for free, which involves communicating with employees, establishing eligibility criteria, and implementing administrative processes.
What are the legal considerations and compliance requirements for a salary sacrifice car scheme?
Employers must comply with HMRC regulations, employment law, and data protection requirements when implementing a salary sacrifice car scheme, ensuring transparency and fairness for employees.
How can I communicate the benefits of a salary sacrifice car scheme to my employees?
Effective communication is crucial to promote the benefits of a salary sacrifice car scheme to employees, including potential tax savings, vehicle choice, environmental benefits, and convenience. Once we set up your scheme, we can arrange a launch day at your office or a location of your choice.
What are the ongoing administrative requirements for managing a salary sacrifice car scheme?
Managing a salary sacrifice car scheme requires ongoing administration, including monitoring employee participation, updating payroll records, managing lease agreements, and providing employee support and guidance. This is made easy and done through our online portal.
Book a call with one of our experts.
Our Salary Sacrifice team will run through the scheme with you and provide any information you require. No commitments, just an open conversation.
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