Salary Sacrifice
Clear and reliable answers to support your Salary Sacrifice journey
Grosvenor’s Salary Sacrifice scheme is one of the most cost-effective ways for employees to drive a brand new electric or plug-in hybrid vehicle. By exchanging a portion of gross salary, employees can save up to 40% compared to a personal lease, with insurance, servicing, maintenance and road fund licence all included.
This page answers the most common questions about Grosvenor’s Salary Sacrifice scheme, from eligibility and Benefit-in-Kind tax to mileage, additional drivers and what happens if your circumstances change.
For a full overview of the scheme, visit our Salary Sacrifice page.
Frequently Asked Questions
Salary Sacrifice Cars FAQs
You can sacrifice a portion of your salary in return for a brand new insured, maintained and taxed Ultra-Low (ULEV) or
Electric Vehicle (EV).
- A brand new vehicle for 2-4 years.
- Fixed cost motoring – road fund licence, motor insurance, breakdown cover, routine servicing and maintenance are included in the price.
- Minimal risks – e.g. no unpredictable depreciation or unexpected maintenance costs.
- No deposits or credit checks required.
- Possible creation of capital through sale of existing car.
- Free delivery to your home or place of work.
- Major discounts – benefit from the buying power and discounts associated with corporate fleets.
- Protection against resignation, redundancy, maternity, paternity, long term sickness and more
- Choice from all major manufacturers and models of ULEVs & EVs in the UK.
- Salary Sacrifice can also include the cost of a home charging point.
- Option to purchase the vehicle at the end of the lease.
- Be a permanent contracted employee with at least 6 months prior service at the time you order your vehicle; OR be on a fixed term contract which is longer than the lease term you choose for your vehicle.
- Earn a minimum salary of £35,000 before the salary exchange reduction.
- Earn above the National Minimum Wage after the salary exchange reduction.
- Be a UK taxpayer (pay tax and NI via PAYE).
- Hold a full valid driving licence for over 6 months.
- Be aged 21 (age limit due to motor insurance reasons).
- Have no more than 6 penalty points on your licence from any two “Category A” convictions in the last 3 years (Category A convictions start with codes SP, CU, LC, MW and PC and will be shown on your licence).
- Not have any conviction resulting in a driving ban.
- Be up to date with any payments relating to Salary Sacrifice schemes in respect of any current or previous agreements (and any other employee benefits schemes) at the point of placing an order.
To fulfil your Company’s health and safety and duty of care requirements; we require anyone who will drive your vehicle to complete a licence check. You and your additional driver(s) will receive a link to the secure licence check portal to upload your licence information to enable us to carry out the check(s) and validate your driving licence information. The licence check link(s) are sent once you have confirmed you wish to proceed with an order.
Yes, but if you do not have the facility for a charging point at your property, you need to consider whether an Electric Vehicle is suitable for you. If there are sufficient public charging points near your home or available at your place of work, which could give you ample opportunity to charge your vehicle, then an EV may still be suitable for you. Details of the charging infrastructure in your area can be found via www.zap-map.com
Yes, your vehicle will be treated as an employee benefit and is therefore subject to Benefit-In-Kind tax (BIK). The amount of BIK that you pay is based on the taxable list price of the vehicle (including any accessories), Co2 emissions, electric range and your personal tax rate. Shortly after delivery, we will provide you with this information via email. Please note; your BIK is subject to change should manufacturers’ list price change at the point of vehicle registration or if legislation is amended by HMRC.
- The cost of electric or fuel for private journeys.
- Motor insurance policy excess.
- Excess mileage charges where you have exceeded the agreed contract mileage.
- Repairs due to damage caused by your negligence.
- The cost of a home charge point (if not included within your Salary Sacrifice).
- Repairs at the end of the term, excluding fair, wear and tear as determined by the BVRLA.
Your order confirmation will give you an estimated delivery date but we encourage you to enquire with the team before placing your order as lead times can vary significantly across models and can vary between 12 weeks and 1 year. You will be kept updated if your estimated delivery is amended by the manufacturer.
Other than the following exceptional circumstances, listed below, the salary sacrifice is fixed:
- Change in legislation / VAT rules / tax rates.
- Manufacturer Price increase.
- Road fund licence increase.
Yes, you can cancel your order provided that, it is prior to us arranging delivery of the vehicle with you and your Company has not signed the vehicle schedule. Any costs incurred for cancelling will be passed on to you, if any. The cancellation charge may vary depending on the manufacturer and the point at which you cancel. You will need to discuss any cancellations with us.
Depending on payroll cut off dates, your first salary deduction will either commence in the month which the vehicle is delivered to you, or the month after you have taken delivery of the vehicle.
There is peace of mind protection built into the scheme so that should you need to take sick leave, maternity, paternity or adoption leave, you are still able to retain the vehicle without this affecting your statutory pay. If your pay reaches the statutory level or falls below the National Minimum Wage for more than 30 days, due to one of the reasons above, you may retain your vehicle for a maximum period of twelve months, from when your leave commenced. If at any point you leave your employer due to one of the above reasons or your leave exceeds twelve months. You may return your vehicle prior to expiry of the lease, without cost (subject to any excess mileage charge or end of lease damage charges). Provided that; you give us at least 30 days’ written notice. You also have the option to purchase the vehicle.
You will not be able to retain the vehicle should you leave your employment but you will be released from the remainder of the commitment of the lease, without penalty, provided that you have given us 30 days’ written notice.
If your actual mileage indicates that it is likely to be significantly different to the mileage that you agreed within your lease, you may be able to adjust the mileage allowance on the anniversary of your lease, to avoid incurring significant excess mileage charges at the end of the lease, or being charged for mileage not used.
Yes, you may nominate a spouse, partner and immediate family members to drive your vehicle. You also have a responsibility along with your Company to ensure that anyone you nominate to drive your Salary Sacrifice vehicle fulfils the relevant eligibility criteria. It is preferable that you add your additional driver(s) when ordering your vehicle. Should you wish to add an additional driver during your lease, please contact us. Please note; this will affect the terms of your salary sacrifice arrangement.
Yes. However, if you would like to return the vehicle, an early termination fee will be charged to you.
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