Salary sacrifice is an innovative employee benefit program where you can swap a portion of your pre-tax salary for fantastic non-cash perks like a company car, childcare vouchers, or extra pension contributions. By lowering your taxable income, you can save money and enjoy great benefits.

How Salary Sacrifice Car Leasing Works

Imagine driving a brand-new car without the hefty upfront costs! With salary sacrifice car leasing, you can do just that. You agree to give up a part of your salary in exchange for a leased vehicle. Your employer handles the lease, and payments are conveniently made from your gross salary before tax. This means more money in your pocket and an affordable way to enjoy a new car.

Savings are made via lower National Insurance contributions and VAT reclamation on the finance rental (50%) and the maintenance rental (100%) of the agreement.

Who Can Join in on the Fun?

Eligibility for salary sacrifice car leasing depends on your employer's policies. Typically, it's available to permanent employees, but some organizations extend this benefit to temporary or part-time staff as well. A quick chat with your HR department can confirm if you qualify.

Staff Benefits of Salary Sacrifice Car Leasing

There are plenty of reasons to love salary sacrifice car leasing! Enjoy potential tax savings, access to a shiny new vehicle without a large initial payment, and the convenience of an all-inclusive package that often covers insurance, maintenance, and even fuel. Plus, it's a smart way to drive a more eco-friendly car.

One set monthly salary deduction includes:

• Significant savings compared to a retail alternative
• Vehicle servicing, maintenance and repair
• Tyre replacement, worn, punctured and damaged
• Breakdown recovery in the event of a breakdown
• Road fund licence for the duration of the term
• Fully comprehensive motor insurance with the cost fixed for the duration of the lease (exclusions apply)
• Fully fitted electric vehicle home charger
  A new car every 2, 3 or 4 years

Company Benefits of Salary Sacrifice Car Leasing

• There are no set up fees and the scheme is cost neutral to your company. The scheme is implemented with all employee savings retained by the employee.
• It will assist your green agenda and help to deliver on your Environmental, Social and Governance (ESG) and Corporate Social Responsibilities (CSR).
• This scheme assists with duty of care and health and safety in the management of grey fleets (employees using their own vehicles for business purposes).
• The scheme can be tailored to your company’s requirements for example, limiting employee choice to size, type of vehicle or contract length.
• If an employee leaves the company, their lease vehicle can be transferred to the employee’s new employer or to another employee in your company, subject to eligibly criteria (exclusions may apply).
• Protection against ‘In Life Events’ can be added to help reduce possible early termination costs (exclusions may apply).
• Can help attract or retain staff

Things to Keep in Mind

While the benefits are plentiful, it's essential to consider a few things. Your take-home pay will be slightly reduced, and leaving the scheme early can come with costs. Also, vehicle availability and lease terms may differ between employers, so be sure to review the details carefully.

Ready to hit the road in style? Salary sacrifice car leasing could be your ticket to a brand-new driving experience!

At Crystal Lease we administer the whole process for you, from initial set up, company credit line, quotations including salary deduction, Income Tax and National Insurance savings and BIK calculations, through to vehicle order, salary deduction calculations, vehicle delivery and in life support for both employer and employee, including periodic reporting to assist with HMRC submissions and payroll deductions.

Crystal Lease