Discover the Benefits of Salary Sacrifice
Driving a brand-new electric car is even more accessible and affordable than ever with our Salary Sacrifice Car Scheme. Our scheme allows you to exchange a portion of your pre-tax salary for a brand-new EV, combining cost-effectiveness with convenience. Whether you're looking to save money, reduce your carbon footprint, or simply drive a newer, safer vehicle, our scheme offers a compelling solution tailored just for you.
Simple steps to your new car
Speak to an expert
We can run through how the scheme works and help you decide if it is right for you.
Why Choose a Salary Sacrifice Car Scheme?
Choosing a Salary Sacrifice Car Scheme through Motorlet offers a host of benefits designed to enhance your driving experience and financial well-being. Here are some key advantages:
Cost Savings on Tax and National Insurance
By participating in the scheme, you reduce your taxable income, which means you pay less income tax and National Insurance. This can lead to significant savings, effectively lowering the net cost of your new car.
Hassle-Free Maintenance and Insurance
Forget about unexpected repair bills or insurance renewals. Your car comes with comprehensive maintenance packages and insurance coverage, ensuring peace of mind throughout your lease term
No Personal Credit Checks
As your employer is leasing the car, you don't need to worry about going through a credit check. This means you might still be eligible, even if your credit score isn't perfect.
Improved Cash Flow
Since the car expenses are spread out and deducted from your salary before tax, you can manage your budget better without the upfront costs typically associated with purchasing a new car.
Access to More
Due to the high savings, you might have access to more expensive and higher-specification vehicles than you would do if you were to lease personally.
Ongoing Support
You'll have Motorlet on hand throughout the lifetime of the lease. With our 24/7 driver-line and an online portal, you'll always have help on hand.
Understanding the Cons of Salary Sacrifice Car Schemes
While the benefits of a Salary Sacrifice Car Scheme are substantial, it's important to consider all aspects to determine if it's the right choice for you.
Impact on Other Benefits
The reduction in your taxable income could affect other financial considerations like mortgage applications or loan eligibility.
Mileage Restrictions
Exceeding the agreed mileage can incur substantial charges, so it’s crucial to estimate your usage accurately.
Commitment
You are committing to a long-term financial arrangement, which might not be ideal if your circumstances are likely to change.
Salary Sacrifice Employee Guide
Request our full guide for employees considering a salary sacrifice.
Tailoring Salary Sacrifice Car Schemes for Your Business
At Motorlet, we understand that every business has unique needs. Our approach is to customise our Salary Sacrifice Car Schemes to fit your company's specific requirements, ensuring a seamless integration and maximum benefit.
Benefits for your employer
Offer Their employees a valuable benefit that improves satisfaction and aids in recruitment and retention efforts.
Implementing the scheme is at no cost. We manage all administration and setup, making it a hassle-free addition to your benefits package.
Lower payroll costs as employee gross salary reductions decrease the National Insurance contributions required from the employer.
Promote environmental sustainability by encouraging employees to choose eco-friendly vehicles.
Support We Provide
From initial setup to ongoing management, our team will guide your employer through every step of the process.
We provide customised promotional materials to help your employer communicate the benefits of the scheme to their employees effectively.
A dedicated manager will be assigned to your account to ensure smooth operation and address any issues promptly.
We'll provide online portals for employees and employers, so vehicles and payroll can be easily managed.
Frequently Asked Questions for Employees
To help you better understand the Salary Sacrifice Car Scheme, we’ve compiled a list of frequently asked questions.
What is a Salary Sacrifice Car Scheme?
A Salary Sacrifice Car Scheme allows you to forgo a portion of your pre-tax salary in exchange for a new car. This amount covers lease and often other expenses like insurance and maintenance, reducing your taxable income.
How much money will I save on tax?
The amount you save will depend on your tax bracket and the cost of the car you choose. Generally, you will save on both income tax and National Insurance contributions by reducing your pre-tax salary.
Can I choose any car I want?
You have a wide range of vehicles to choose from. However, selections may be limited to fully-electric and plug-in hybrids.
Are there additional costs for maintenance and insurance?
No, the monthly sacrifice amount typically includes all running costs such as maintenance, insurance, and road tax, making budgeting simpler and driving worry-free.
What happens if I leave the company or lose my job?
If your employment ends, you can either return the vehicle or, in some cases, take over the lease personally or take it with you to your new employer if they have a scheme in place. Terms vary, so it's important to understand the options available in your contract.
How long is the lease term, and can I change the car before it ends?
Lease terms are usually between 2 and 4 years. Early termination might be possible but could involve fees. It's best to choose a term and car that you'll be happy with for the duration.
What if I exceed the agreed mileage?
Exceeding your agreed mileage will result in additional charges. These are specified in your contract, so it’s important to estimate your mileage accurately at the start of the lease.
Can family members use the car as well?
Yes, the car can be used by your immediate family members. However, ensure this complies with the terms outlined in your lease and insurance policies.
How does the scheme affect pension contributions?
Since your pre-tax income is reduced, your pension contributions might decrease unless they are calculated based on your notional salary (pre-sacrifice salary). Check with your HR department or pension provider for specific details.
Can I add extras to the car or customise it?
Yes, you are able to add extras and customise the car you choose.
Ready to get started?
Call us at your convenience on 0333 202 6668 or arrange a callback.