Salary Sacrifice Scheme
Tax-efficient benefit for all your employees, a net cost solution for your business
I'm an employer
See how you can offer your employees an extra 'perk' with an electric (and plug-in hybrid) car salary sacrifice scheme.
I'm an employee
See how much you could save by taking some of the latest cars on a salary sacrifice scheme, saving tax, NI and BiK.
How does a Salary Sacrifice Scheme work?
Would you like to give your employees an extra ‘perk’? Not only does a salary sacrifice scheme reward employees, but it can help save money and support sustainability goals. Working alongside Ezoo, our salary sacrifice scheme offers all of the above and more.
An Electric Vehicle salary sacrifice scheme allows employees to save up to 60% on the cost of a premium electric car. The scheme deducts a portion of their pre-tax salary each month to a lease a car, this results in a significant benefits, saving on PAYE tax, National Insurance (NI) and Benefit-in-Kind (BiK).
With the Cocoon/Ezoo partnership, businesses can sign up to the salary sacrifice scheme at no extra cost, we can also pair the scheme up with our flexible range of premium vehicles and we also have a great range of premium electric (and plug-in Hybrid (PHEV)) vehicles to choose from.
The Salary Sacrifice scheme is easy to manage and a team will handle all of the admin for you, making the scheme not only HMRC-compliant but also hassle-free. The benefits of salaray sacrifice doesn’t end there, other benefits include:
- Save between 30 to 60% of the cost of a premium electric vehicle
- Flexible and Short-Term Vehicle Contracts Available
- Free sign-up for businesses
- Salary Sacrifice Comprehensive Packages include insurance, servicing, breakdown assistance, ULEZ and Congestion zones.
If you are ready to switch and give your employees the ultimate in staff benefits, then contact us today and take the steps toward a greener, more rewarding future for you and your staff.
Salary Sacrifice is as easy as 1, 2, 3...
Manufacturers We Generally Stock
Are you an employer?
Tax-efficient benefit for all your employees, a net cost solution for your business
Why choose a Salary Sacrifice Scheme?
Save up to 60%
We have vehicles to suit all vehicle requirements and budgets.
Premium Electric Vehicles
Choose from some of the best Electric Cars Brands available including Polestar and BMW.
Full Inclusive Package
Insurance, Maintenance, Breakdown Assistance, Road Tax and more.
Cost Neutral for Businesses
It's free of charge for companies to register for our Salary Sacrifice Scheme.
Delivered To Your Door
Once you've chosen your car, picked your terms, we'll deliver the car to your door.
Net Zero Goals
Offering Electric Vehicles (EV) on Salary Sacrifice is a great way to hit Net Zero goals.
Salary Sacrifice Examples
New BMW i4 Gran Coupe
Salary: £75,000 per annum
Contract: 18 Months
Annual Mileage: 12,000 miles
£0.00 per month, saving 0%
New Porsche Macan Electric
Salary: £125,000 per annum
Contract: 48 Months
Annual Mileage: 5,000 miles
£599 per month, saving 59%
Help & Advice Guides from Cocoon
Frequently Asked Questions
Who is eligible for Salary Sacrifice?
To qualify for a Salary Sacrifice Car Subscription Scheme you must be between the ages of 25 and 75 years old. To be eligible for a Car Leasing Salary Sacrifice Scheme you must be 21 plus.
You must also be a UK resident and have a valid UK or EU driving licence without any motoring offences in the last 3 years.
You should have been in employment for at least 6 months?
Are there any tax implications for a Salary Sacrifice Scheme?
A Salary Sacrifice scheme will reduce your cash salary, in turn this reduces your tax liability. It is particularly good for higher earners who pay higher tax and National Insurance.
Why should I choose Salary Sacrifice?
There are multiple positive benefits to using a Salary Sacrifice Scheme, these include:
- Cost-Neutral for the employer
- Save money on both National Insurance and Income Tax
- Cheaper than purchasing a car outright or on finance
- Access our range of cars quicker
- Shorter and Flexible Terms available so that you can change your car more often.
- Our team manages everything for you, taking away the hassle.
- Choosing and EV vehicle is more environmentally friendly.
.
Things to consider with a Salary Sacrifice is that your wage may look lower on paper, this could have a negative effect on mortgage and credit applications. Your salary after deductions of a Salary Sacrifice must star above minimum wage.
Can part-time employees use Salary Sacrifice?
Yes, it is possible for part-time employees to take a Salary Sacrifice. This will depend on the individual, salary, hours worked and minimum wage requirements.
What is a Salary Sacrifice Scheme?
A Salary Sacrifice Scheme allows employees to give up a portion of their gross salary in exchange for a car. This arrangement can offer Tax and National Insurance savings and works best with Electric Vehicles.
What happens if I leave my job or go on long-term leave?
If you leave your employment or you go on unpaid leave, you may be required to return the vehicle or pay early termination charges. Some of our schemes offer protection against these scenarios, it is important to check your employer’s policy.
Can I use the vehicle for personal use?
Yes, you can use the Salary Sacrifice vehicle for both business and personal use, although Benefit-in-Kind will apply, which is why it makes sense to look at Electric Vehicles.
Will I need a credit check?
No – As the salary sacrifice lease/subscription is arranged through your employer and is not a personal credit agreement, it doesn’t typically affect your credit score.
Using a Salary Sacrifice scheme will reduce your salary on paper, this may have an affect on any mortgage or credit applications you may have.
My employer already has a Salary Sacrifice Scheme, can they still use yours?
Yes, so long as your Employer’s current Salary Sacrifice provider hasn’t signed into an exclusive one provider deal, our deals can operate side-by-side.
One of the massive positives to our salary sacrifice program is that we offer both flexible and short-term contracts, allowing you to change your vehicles on a more regular basis.
