SALARY SACRIFICE

Benefits to Businesses

A salary sacrifice scheme is where an employee gives up a portion of their gross salary for a non-cash benefit – in this case a fully funded, maintained and insured car.

By giving up a portion of their gross salary, their income tax and national insurance contributions reduce. They then choose an ultra-low emission or electric vehicle that enjoys very low benefit in kind tax (BIK).

The scheme therefore saves the employee tax and NIC on the salary sacrificed and the employer makes savings by paying significantly lower NI on the ultra-low emission car benefit.

To put this in context, in 2020/21 the company car BIK on a fully electric vehicle (EV) is zero, rising to 1% in 2021/22 and then fixed at 2% 2022 - 2025.

An ultra-low emission / electric car salary sacrifice scheme offers widespread benefits to employers.

  • Full guidance, support and consultation from Grosvenor Leasing in setting up the scheme
  • Class 1a NI savings
  • An additional staff benefit, potentially at no extra cost
  • An enhancement to your overall renumeration package
  • A clever mechanism for reducing your company’s carbon footprint and moving to ULEVs and EVs
  • A perfect option for drivers moving out of the company car scheme
  • The ability to attract and retain staff
  • Avoids the burden associated with Grey Fleet

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Did you know that an increasing number of companies are implementing Grosvenor’s Personal Contract Hire scheme for their grey fleet drivers and other members of staff. https://t.co/sKDMq7NcWp #pch #contracthire #fleetmanagement #hrdirector #hrdirectors #electricvehicles https://t.co/aEkqPi5Ibw