S h a r e
Revealing the secret sauce of car salary sacrifice


Posted by
Charlie Strand
May 2024
A list of key ingredients makes everyone’s money go further through a tempting car salary sacrifice scheme.
With a salary sacrifice scheme on the menu, employees can have more by getting paid less. But instead of salary being swallowed up by taxes and National Insurance, employees sacrifice some of their earnings to pay for a new car.
Depending on a driver’s tax band, this immediately bakes in savings of 30-60% because they pay for the car partly with cash that would have been fed to the government. This also cuts the Class 1A National Insurance Contributions bill for the employer, making schemes even more appetising.
The employer then leases a car from a salary sacrifice provider – such as Fleet Alliance – to serve up additional benefits for drivers.
Firstly, there is the salary sacrifice company’s purchasing power: Fleet Alliance manages over 30,000 vehicles so it can source a better deal for all employees compared to one driver shopping around by themselves.
This fact, in addition to tax and NI savings, makes salary sacrifice a much cheaper option than a PCP or personal lease.
Unlike a PCP, there is no downpayment needed or even a credit check, while drivers have the reassurance of payment protection as part of the mix.
In return for drivers receiving this employee benefit, a salary sacrifice car is liable for company car tax, but by opting for an electric or ultra-low emission car, the bill is reduced to as little as £9 a month, which is more than offset by tax and NI savings.
Pick and mix perfection for drivers
When a driver picks a salary sacrifice car, they are designing their own unique driving experience.
A salary sacrifice car is provided on a lease, so drivers can ensure the contract and car are tailored to their needs.
Choose from a variety of lease lengths, typically two to four years, and a range of mileage options. Drivers can even add in an electric car charger if needed.
Then it’s time for the creativity to flow, by specifying the car’s options and colours for the perfect result, all through a dedicated driver portal.
A mixture of benefits
By choosing a salary sacrifice car, drivers are well catered for with a range of services that keep them on the road.
Each car comes with breakdown cover, along with service and maintenance, including tyre replacement, while comprehensive insurance provides peace of mind.
Salary sacrifice takes the hassle out of car ownership, so drivers enjoy worry-free motoring.
Catering for the needs of drivers
When drivers opt for salary sacrifice, they gain access to a whole team of dedicated experts who are there to support them.
From helping with vehicle selection through to explaining costs to drivers, then arranging servicing and providing support when issues occur, there is always help available online or over the phone.
Creating the secret sauce
Like any dish, the core ingredients of salary sacrifice are just the start; you also need expert knowledge to put them together to deliver the best results for both the employer and drivers.
This is the benefit of having a specialist salary sacrifice leasing provider, who looks after the scheme, the company and the driver.
With the right care, attention and expertise, salary sacrifice is a perfect blend for everyone that reduces the cost of switching to an electric or ultra-low emission car and provides a great additional benefit to employees.
So, are you ready for the taste of salary sacrifice? Get started now.
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