SALARY SACRIFICE

SALARY SACRIFICE

Salary sacrifice schemes are popular as they offer cost-effective benefits to businesses and staff. And, with Carvoy’s electric car salary sacrifice, the lower carbon the vehicle, the bigger the savings.

What is

Salary Sacrifice?

Salary sacrifice enables employees to benefit from initiatives such as childcare, healthcare or cycle to work schemes by trading a portion of their pre-tax salary. Monthly contributions are taken from their pay in return for goods or services, such as an electric car lease scheme.

An electric car salary sacrifice scheme can save your staff up to 45% of motoring costs and contribute towards your company’s sustainability policy, offering your employees a greener way to lease a company car.

How Does

A Salary Sacrifice Scheme Work?

Offering a salary sacrifice scheme at your workplace is simple with Carvoy. We provide the right electric car for each member of staff in the scheme and the leasing contributions are deducted from their wages each month. 

We take care of the licence checks and the mileage, as well as covering maintenance costs and offering breakdown cover as part of the inclusive package. All you have to do is ensure the correct deductions are taken from their salary at the end of the month.

Does salary sacrifice include Ultra Low Emissions Vehicles?

Yes! Back in 2017, a change in tax laws meant that car salary sacrifice scheme members have to pay tax on either the value of the car or the salary contributions. The great news for your company is that these changes do not apply to vehicles with emissions lower than 75g/km CO2.

SALARY SACRIFICE BENEFITS TO EMPLOYERS

The benefits to your company include:

  • savings in National Insurance Contributions, as salary sacrifice schemes are exempt from NICs
  • an easier transition from conventional vehicles to electric cars for your company car drivers
  • an increased incentives package to attract and retain good staff
  • lower expense claims from business trips
  • a fully managed scheme
  • reduced company CO2 output and lower air pollution in your community

SALARY SACRIFICE BENEFITS TO EMPLOYEES

The benefits to your team include:

  • greater tax and NICs savings
  • the ability to enjoy a brand new, environmentally-friendly vehicle at a lower cost than through personal or business contract hire
  • significantly lower running costs
  • a reduced carbon footprint, benefiting their local community

Salary Sacrifice Examples

Peugeot e 2008 GT

2022/2023Before Salary SacrificeAfter Salary Sacrifice
Salary£30,000,00£25,590,80
Car Value£37,160,00
£30,000,00£62,750,80
Net Pay 'Take Home'£23,848,10£20,904,96
Car Lease Annual Costs£4,409,20
Employee Save£1,466,06
Cost To Employer£33,145,45£32,593,72
Cost After CT Relief£26,847,81£26,400,91

BMW iX i20

2022/2023Before Salary SacrificeAfter Salary Sacrifice
Salary£80,000,00£70,353,08
Car Value£63,915.00
£80,000,00£134,268,08
Net Pay 'Take Home'£54,250,10£48,264,15
Car Lease Annual Costs£9,646,92
Employee Save£3,660,97
Cost To Employer£87,449,05£87,327,91
Cost After CT Relief£70,833,73£70,735,61

Volva XC40

2022/2023Before Salary SacrificeAfter Salary Sacrifice
Salary£60,000,00£54,264,25
Car Value£43,495,00
£80,000,00£97,759,25
Net Pay 'Take Home'£42,900.10£39,297,10
Car Lease Annual Costs£5,735,75
Employee Save£2,132,75
Cost To Employer£66,799,05£66,743,56
Cost After CT Relief£54,107,23£54,062,28

Mini 3 Dr F56

2022/2023Before Salary SacrificeAfter Salary Sacrifice
Salary£30,000,00£26,030,68
Car Value£30,995,00
£30,000,00£57,025,68
Net Pay 'Take Home'£23,848,10£21,198,58
Car Lease Annual Costs£3969,32
Employee Save£1,319,80
Cost To Employer£33,145,45£32,641,36
Cost After CT Relief£26,847,81£26,439,50

Salary Sacrifice Examples

Peugeot e 2008 GT

2022/2023Before Salary SacrificeAfter Salary Sacrifice
Salary£30,000,00£25,590,80
Car Value£37,160,00
£30,000,00£62,750,80
Net Pay 'Take Home'£23,848,10£20,904,96
Car Lease Annual Costs£4,409,20
Employee Save£1,466,06
Cost To Employer£33,145,45£32,593,72
Cost After CT Relief£26,847,81£26,400,91

BMW iX i20

2022/2023Before Salary SacrificeAfter Salary Sacrifice
Salary£80,000,00£70,353,08
Car Value£63,915.00
£80,000,00£134,268,08
Net Pay 'Take Home'£54,250,10£48,264,15
Car Lease Annual Costs£9,646,92
Employee Save£3,660,97
Cost To Employer£87,449,05£87,327,91
Cost After CT Relief£70,833,73£70,735,61

Volva XC40

2022/2023Before Salary SacrificeAfter Salary Sacrifice
Salary£60,000,00£54,264,25
Car Value£43,495,00
£80,000,00£97,759,25
Net Pay 'Take Home'£42,900.10£39,297,10
Car Lease Annual Costs£5,735,75
Employee Save£2,132,75
Cost To Employer£66,799,05£66,743,56
Cost After CT Relief£54,107,23£54,062,28

Mini 3 Dr F56

2022/2023Before Salary SacrificeAfter Salary Sacrifice
Salary£30,000,00£26,030,68
Car Value£30,995,00
£30,000,00£57,025,68
Net Pay 'Take Home'£23,848,10£21,198,58
Car Lease Annual Costs£3969,32
Employee Save£1,319,80
Cost To Employer£33,145,45£32,641,36
Cost After CT Relief£26,847,81£26,439,50

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