Salary sacrifice in essence is set up so employees can pay part of their gross salary towards the purchase of a vehicle but make significant savings through income tax and National Insurance.
The benefits of a car salary sacrifice scheme are;
- Vehicles can be offered at no cost to the employer
- Manufacturers and contract hire companies can offer reduced rates
Company cars brought through salary sacrifice are still eligable for benefit in kind tax so the lower the co2 emissions on the vehicle, the lower the tax likely to be paid.