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Salary Sacrifice for your company
When you set up a salary sacrifice car scheme, you allow your employees to drive brand-new cars by exchanging part of their gross salary each month. This reduces their taxable income, helping them save on tax and National Insurance, while you as the employer also benefit from lower NI contributions — making it a win-win.
It’s simple to launch, with all deductions handled through payroll and minimal admin on your side. We’ll work closely with you to set up the scheme, keep everything fully compliant, and provide ongoing support so you can offer a brilliant benefit that helps attract and retain top talent.
How Does It Work for Employers?
When you set up a salary sacrifice scheme, your employees give up a portion of their gross salary to lease a brand-new car. It reduces their tax and NI, while you save on employer NI contributions. Everything is managed through payroll, with our team handling the admin and compliance, so it’s effortless for you.
It is as simple as:
We'll set the scheme up
Employees pick their car
We help adjust payroll & admin
You & your employee save on tax
⭐ 5 benefits for your business
Enhance your benefits package at zero cost
We can offer your team a highly desirable perk without it costing you anything extra to set up, helping you stand out in a competitive job market.
Boost staff retention and attract top talent
Salary sacrifice gives employees a meaningful lifestyle benefit that keeps them happy and loyal, reducing recruitment churn and making roles more appealing.
Save on your National Insurance contributions
Because the salary deductions reduce gross pay, you pay less in employer NI — so you make savings every month while supporting our people.
Support your sustainability and ESG goals
Encourage uptake of low-emission or electric vehicles, cutting your organisation’s overall carbon footprint and showing you're serious about greener business.
Minimal admin, fully compliant with HMRC rules
We can implement the scheme quickly and easily, with Motorlet handling all the heavy lifting — from paperwork to compliance — so there’s no added strain on your HR or payroll teams.
⭐ 5 benefits for your employees
Drive a brand-new car for less
Your staff can get behind the wheel of a brand-new, fully maintained vehicle — often for far less than if they leased or financed privately — thanks to paying from their gross salary before tax and NI.
No big upfront costs or hidden surprises
With everything wrapped into one fixed monthly amount, including road tax, warranty, breakdown cover and optional maintenance, employees won’t face unexpected repair bills or hefty deposits.
Lower Benefit-in-Kind (BiK) on EVs and hybrids
Encourage greener choices. When employees opt for electric or low-emission vehicles, they benefit from ultra-low BiK rates, meaning more of their salary stays in their pocket.
Easy, hassle-free ownership experience
No credit checks, no negotiating with dealers — everything is set up by you as their employer and managed through payroll. They simply pick their car and drive.
A brilliant lifestyle perk that enhances wellbeing
Offering salary sacrifice shows you care about your employees’ financial health and lifestyle, giving them peace of mind with a reliable, fully maintained vehicle — and boosting overall job satisfaction.
Speak to one of our experts
Arrange a call at your convenience to run through what a salary sacrifice scheme might look like for you and your employees.
Seamless Integration for Your Business
Implementing our Salary Sacrifice Car Scheme is straightforward and designed to integrate seamlessly with your current HR and payroll systems. Here’s how you can get started:
Salary Sacrifice Employer Guide
Download our full guide for employers considering salary sacrifice.
Frequently Asked Questions by Employers
We've compiled answers to some of the most common questions employers have about implementing a Salary Sacrifice Car Scheme.
What are the costs to our company for setting up the scheme?
There are no setup costs involved, as the scheme is designed to be cost-neutral due to NI savings.
How does the scheme impact our payroll process?
We work closely with your payroll department to ensure seamless integration. Adjustments will be made to handle the pre-tax salary reductions appropriately.
What is our liability if an employee leaves before their lease ends?
We offer flexible terms to handle such situations, including transfer of the lease to a new employee or preferential early termination agreements.
Can we restrict the types of vehicles employees can choose?
Yes, you can set criteria based on budget, emissions, or vehicle type to align with your company’s policies and values.
How do we handle employees' queries and support needs?
Motorlet provides dedicated support to handle all employee inquiries and maintenance needs, so you don't have to. Employees will also have their own portal that they can log in to.
Are there any tax implications for the company?
The scheme can reduce your overall tax burden due to lower NI contributions; however, you should always review tax benefits with your financial advisor/accountant.
How long does it take to implement the scheme?
Typically, it can be set up within a few days toa week, depending on the size of your organisation and the extent of customisation needed.
How is employee eligibility determined?
Eligibility can be based on factors like employment duration, job role, and salary level, tailored to your organisational requirements.
What happens in the event of an employee’s long-term absence (e.g., maternity leave)?
We can arrange for pause terms or temporary transfers during extended absences to maintain the scheme’s benefits.
Can the scheme be used alongside other employee benefits?
Absolutely, the car scheme can complement existing benefits, adding value without disrupting other offerings.
Ready to get started?
Call us at your convenience on 0333 202 6668 or get in touch below.