For Corporate Businesses
What is a Salary Sacrifice car scheme and how does it work?
A Salary Sacrifice Car Scheme is an additional benefit you as an employer can offer your employees. It's easy to set up and run and our dedicated teams are here to help your business set up a scheme.
Once your businesses Salary Sacrifice scheme is set up your employee selects a new car from a wide range vehicles (currently available in the UK) using our dedicated website. They can compare lease quotes and add any additional extras before submitting them for approval.
Then you (as their employer) take an agreed fixed amount from their salary each month – before income tax and National Insurance are deducted – for the duration of their contract.
What are the key benefits for your business?
A cost-efficient benefit
Salary Sacrifice could save you the cost of car allowances, while the lower tax levels paid by participating employees are reflected in your Class 1A National Insurance Contributions.
Easy to implement
Our expert team offer support implementing and managing your scheme. We also supply formatted payroll reports to make deductions simple.
More choice, more transparency
Employees can explore as many quotes as they like, with all costs shown clearly, including maintenance and breakdown cover. You stay in control.
Improve the reputation of your business
By encouraging your employees to select low and zero-emission cars, you will improve your sustainability credentials.
What are the key benefits for your employees?
Get more for less
Alphabet Salary Sacrifice is an additional benefit that you can offer your employees to give them access to a wide range of cars and makes. By choosing an EV this could be a more affordable option given the current tax rates.
Fixed monthly payments
As well as no deposit, the “salary sacrifice” stays the same for the duration of the lease period the employee has chosen, helping them to budget accordingly.
Freedom from ownership costs
With a Salary Sacrifice car, employees don’t have to worry about the cost of maintenance and servicing, or the car losing value, that come with outright ownership.
Can I have a list of available cars and prices?
You can have almost any vehicle that you would like (vehicles available to you will be dependent on your company’s requirements and what is currently available in the UK). There is no set price list; all quotes must be provided individually through the Alphabet Salary Sacrifice portal, which must be authorised by your employer. All prices are discounted through our scheme and so dealer offers do not apply.
What does my quote include?
All quotes include Road Fund Licences, MOT’s, servicing, maintenance, replacement tyres, windscreen damage and breakdown cover.
Do I have to pay Benefit In Kind Tax (BIK, Company Car Tax)?
Yes, you still have to pay Benefit in Kind Tax in line with the HMRCs requirements. Please note BIK varies depending on the vehicle you choose. Electric vehicles attract much less BIK than petrol or diesel vehicles.
How do I know how much of my Salary will be deducted if I choose a Salary Sacrifice vehicle?
When choosing a vehicle using our online portal you will see the itemised quote which includes the amount that will be deducted from your Salary should you decide to go ahead with the vehicle. Your Company/Payroll department will be automatically informed of the amount.
Impact on Pension
Please refer to the Government website www.gov.uk for information.