For official guidance on setting up a salary sacrifice arrangement, visit the UK Government’s website:
For official guidance on setting up a salary sacrifice arrangement, visit the UK Government’s website:
Ensuring employees understand the car subscription service can help them make informed decisions about participation. Clear information provided through guides, FAQs, or informational sessions can be helpful. Employees may want to consider factors such as financial implications, flexibility, and included benefits when deciding if the service is right for them. Offering opportunities for questions and discussions can support them in making the best choice for their needs.
Employers need to understand how salary sacrifice affects payroll to ensure smooth implementation and clear communication with employees, as their payslips will reflect adjustments based on the pre-tax salary reduction. Here’s how:
The agreed amount for the car subscription is deducted from the employee’s gross salary before tax and National Insurance are applied.
The employee’s taxable income decreases, leading to lower Income Tax and National Insurance contributions.
A separate line may appear on the payslip indicating the BiK tax for the vehicle, calculated based on its CO2 emissions and list price.
Employers may see a reduction in their National Insurance contributions due to the lower taxable salary.
We’ll explain how you can join, the documents you’ll need and how quickly we can deliver your vehicle.
Registered office
Abbey Road, Whitley,
Coventry, CV3 4LF Registered in England: 10445040
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