Employer Salary Sacrifice

As an employer, it’s likely you’ll want to reward your employees with a benefits package that they deserve. Our salary sacrifice car scheme delivers a compelling all-round package that makes car ownership easier for your staff. It’s easy to setup too, with our dedicated salary sacrifice experts guiding you and your team through every step of the way.

The best part? Our scheme is completely free to join and does not put excessive strain on your business’ budgets.

What is Salary Sacrifice?

In a nutshell, it's an employee benefit scheme that enables your employees to 'sacrifice' some of their salary in return for a brand new leased car.

Because the scrifice is a deduction from an employee's gross salary, the cost of leasing a car is cheaper than leasing the same vehicle on a Personal Contract Hire agreement.

Additionally, the company makes savings on National Insurance contributions so there are financial benfits for both the employee and the business.

Benefits are increased significantly for both parties if the vehicle leased is pure electric.

Aids recruitment, employee satisfaction, motivation and retention
No cost to your business
There is a no setup fee or ongoing cost. All employee savings are retained by the employee.
Low administration benefit car scheme
Savings for your company
Reduced National Insurance contributions for employees participating in Salary Sacrifice. Savings can also be made by reclaiming VAT on the rental (50% of VAT payable on the lease element of rental and 100% of VAT payable on the service element of rental) subject to eligibility.
Bespoke webinars to support & engage your employees
Suitable for all employees
Regardless of their status or need for a company car within the business, so long as the individual's salary is at least the National Minimum wage after any deductions and they have passed their probationary period.
Fully managed service
From initial setup, employee eligibility, company credit line, employee vehicle quotations including salary deduction, income tax and NI savings and BIK calculation. Through to vehicle order, salary deduction calculations, vehicle delivery and in-life support for both employee & employer, including periodic reporting to assist with HMRC submissions and payroll deductions - Yorkshire Fleet are on hand to assist with all elements of your scheme.
Tailored for your business
The scheme can be tailored to your company's requirements, for example, limiting employee choice to only low or zero emissions vehicles, size or type of vehicle or contract length.
Early termination protection
Industry leading life event cover, protects both the business and your employees from expensive early termination fees.
Electric vehicles
When electric vehicles are chosen it helps your employees make the switch from pterol or diesel without worrying about changes to used car values or maintenance costs. It also assists with your green agenda and helps to deliver on your Environmental, Social and Governance (ESG) & Corporate Social Responsibility (CSR).
Vehicles are transferrable
If an employee leaves the company, their lease vehicle can often be transferred to the employee's new employer or to another employee in your company, subject to availability.

A brand new leased vehicle of your choice
Vehicle servicing, maintenance & repair
Tyre replacement due to wear & tear
Roadside assistance in the event of a breakdown
Road fund licence
Fully fitted electric home charger
Early termination protection for unseen circumstances
Tax & National Insurance savings
Because payment is taken from the emplyee's gross salary via payroll, they benefit from Tax and National Insurance savings (typically 30-40% savings for an electric vehicle) making the overall cost substantially less than a Personal Contract Hire (PCH) agreement.
Low Benefit in Kind (BIK) payable for electric vehicles
Current BIK rate on an electric car are 2% in the 2024/25 tax year and are held at this rate for a further year.
No large upfront deposit
No employee credit check
Additional savings
Compared to retail alternatives where there's a risk of fluctuating used car values and maintenance costs.

How does it work?

Introduce Yourselves To Us

We’ll listen to your goals & preferences to determine the best salary sacrifice scheme for your business.

Scheme Sign-Up

Once we’ve worked out the perfect scheme for your business, we’ll ensure it’s setup to run smoothly.

Inform Your Employees

We’ll work with you to ensure your employees are aware of the great deals & benefits on offer.

Lease A Vehicle

Once an employee uses the scheme, you’ll lease the vehicle on their behalf and can automatically deduct payments from their salary.

Reward your employees with enhanced savings on brand-new cars with our salary sacrifice deals

Get Started

Employer FAQs...

The scheme provides the employee with a fully insured Electric Vehicle, including full servicing, maintenance, replacement tyres, road tax and roadside assistance for the duration of the contract. It is also possible to include Early Termination insurance to limit the Employers exposure if the Employee leaves the business.

There are no initial setup costs when setting up a scheme with Yorkshire Fleet.

Contract terms can run from 2 to 4 years. Generally speaking, the longer the term of the contract, the lower the cost of the monthly rentals, and typically 3 or 4 year contracts are the most popular and offer the best value for money.

Yes, we would discuss the bespoke requirements of the scheme during the initial consultation, and it is easy to restrict the scheme to Electric Vehicles.

No, there is no minimum uptake. Some companies set up the scheme purely for the benefit of one Director or Employee.

No, they do not need to be on a full-time contract, however in order to be eligible for the scheme, the reduction in salary can’t take them below the National Living Wage.

Yes, provided that the total deduction from their salary does not take them below the National Living Wage.

Quotes are usually valid for 28 days, although sometimes this may reduce due to factors outside of our control, for example if a manufacturer has a price increase, or if there is a rise in interest rates. Prices fluctuate over time due to a multitude of different factors, such as interest rates, changes in fleet discount terms, manufacturer price increases, changes in residual values and variations in insurance charges.

If we are able to source a suitable vehicle from UK stock, a lead time of 10 – 14 days is usually achievable. If we need to place a new factory order built to your specification and colour, lead times can vary from 2-3 months to over 12 months, depending on the make and model. We use a wide network of suppliers throughout the UK, so if there is a rare vehicle out there, we can usually locate it!

The rentals are collected vie Direct Debit directly from the Company, and the appropriate amount is deducted from the Employees salary through the regular payroll process. The Employer is provided with a report detailing all of the required information for payroll.

The employee returns the car to their employer, and they are free to either re-allocate the vehicle to another employee under a new Salary Sacrifice arrangement, or return the car to the finance company. It is possible to include Early Termination insurance as part of your scheme, which significantly reduces the finaicial exposure of the company in the event of the employee leaving the company.

At the end of the contact term, Yorkshire Fleet will arrange for the vehicle to be collected, either from the company or employee address. As part of this collection process, the vehicle will be appraised, and any excess mileage or damage which falls outside of the published fair wear and tear guide will be charged back to the employer (and may then be subsequently re-charged to the employee, which would be detailed in the terms of the agreement).

No, Salary Sacrifice and the associated fleet discount terms and tax savings are not accessible through the main dealer network.