The employee can simply return the car to their employer (as if it was a traditional company car) and the employer is free to either re-allocate to another employee under a new Salary Sacrifice arrangement, or return the car to the funder. To mitigate any potential risk from early termination costs, the Select Salary Sacrifice scheme can include extensive protection cover.

It costs nothing, the scheme is totally free to set up - the employer will save money. By introducing cost savings to the employee by saving Income tax and NI, the employer will also save in Employers NIC. These can be significant and prove a key benefit for businesses.

There are some real benefits of introducing a Salary Sacrifice scheme through Select Fleet Solutions. It delivers real and significant financial savings to your employees who require a car, and can be offered as a benefit to all employees, not just the car eligible community. It also offers significant savings to the employer in terms of National Insurance Contributions (NICs), as well as providing other benefits. For example, it may encourage staff to drive more environmentally friendly vehicles, reducing the company’s carbon footprint.

Operating a Salary Sacrifice scheme can support a wider commitment to a business’s Environmental and Social Governance (ESG) by encouraging more employees into zero-emission cars, with their commuting mileage contributing to an overall reduced carbon footprint. Salary Sacrifice can also lead to improved management of ‘Grey Fleet’ risk – with new cars, fully maintained and insured, there is less opportunity for an employee to drive on business with a car that is not safe and legal to do so. As well as attracting and retaining great staff!

Getting started is very simple. Simply complete our contact form with your details and our friendly team will be in touch for an initial consultation, and we’ll take it from there. 

Agreeing to reduce a salary might sound counterproductive, but if an employee ends up paying less BIK tax than they are saving on Income Tax and NI, they will save money through this tax efficiency.

With the lowest levels of BIK applying to Electric Vehicles, it is these cars that provide the greatest savings under Salary Sacrifice, although Plug-in Hybrids can also save money under the scheme. Petrol and diesel vehicles are often unsuitable due to the higher rate of BIK tax paid on these vehicles.

It is a business lease between the funder and the employer, so employees are not required to undergo a credit check. Instead, this is done on the employer, as with traditional company cars.

The employer is invoiced each month for the lease on the car, and any insurances, and this amount then forms what’s known as the ‘Gross Sacrifice’ taken from the employee’s salary by the employer each month.