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Salary Sacrifice for Cars

Written by | Posted on 20.08.2015
LeasePlan UK Woman holding folder

A car scheme that’s a great motivational vehicle.

Happier employees, less worried employers

In the public sector around 57% of total road mileage is covered by privately owned, employee cars.

It’s a real headache for the organisations concerned because of huge mileage claim costs, difficulty of determining how safe, reliable and compliant the cars are. And if you provide essential services, you really don’t want staff having vehicles that fail to start or break down in the middle of nowhere.

With a Salary Sacrifice for Cars scheme, you can help your employees to afford a new car that meets safety and regulation standards your company is expected to comply with. Employees can use their salary to pay for a new car before tax and National Insurance are deducted, giving them 30-45% more spending power.

They’ll be happier (and safer) all whilst the organisation also sees benefits through: 

  • Tax and National Insurance savings
  • Easier to attract and retain staff
  • Lower mileage claims
  • Reduced carbon footprint

Salary Sacrifice is a great benefit for all involved and definitely worth looking into. To understand how it works here’s a quick and easy guide.


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