Intro to Salary Sacrifice
Unlock the Benefits of Salary Sacrifice Car Leasing! Explore our introductory guide to this innovative employee benefit program. Discover how salary sacrifice car leasing can save you money, provide tax advantages, and offer a hassle-free way to drive your dream car. Get started on a smarter commute with our salary-sacrifice car leasing insights.
How does Salary Sacrifice Work?
The SalSac program offers employees the opportunity to lease a new vehicle through the company, with the cost being covered by a portion of their gross salary. This scheme yields notable financial advantages for both the employer and the employee, particularly when opting for an all electric vehicle.
How Much Can I Save with a Salary Sacrifice?
The total salary sacrifice saving is dependent on your annual salary, tax band and the vehicle chosen. Due to the low benefit in kind tax all-electric cars carry the highest savings. Savings start at around 20% but continue all the way to 58% in some cases.
Salary Sacrifice & DreamLease
DreamLease is partnered with a Salary Sacrifice provider called SalSac. Via SalSac, DreamLease offers a comprehensive salary sacrifice package and can include vehicle insurance and a fully fitted electric car home charger. Once a car is selected DreamLease creates personalised quotes showing employees their exact savings and then will guide you through the process all the way to delivery of your brand new salary sacrifice lease car.
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Salary Sacrifice FAQs
Salary sacrifice is an employee benefit program where you agree to give up a portion of your pre-tax salary in exchange for specific non-cash benefits, such as a company car, childcare vouchers, or a pension contribution. This reduces your taxable income, potentially saving you money.
In salary sacrifice car leasing, you agree to sacrifice a portion of your salary in exchange for a leased vehicle. Your employer typically arranges the lease, and you make payments directly from your gross salary before tax is deducted. This can result in significant tax savings and can make it more affordable to drive a new car.
Eligibility for salary sacrifice car leasing depends on your employer's policies. Typically, it's available to permanent employees, but some organizations may extend it to temporary or part-time staff. Check with your HR department to see if you qualify.
The main benefits include potential tax savings, access to a new vehicle without large upfront costs, and the convenience of an all-inclusive package covering insurance, maintenance, and sometimes even fuel. It can also be a cost-effective way to drive a more environmentally friendly vehicle.
While there are many benefits, there are some potential downsides, too. It's essential to consider that your monthly payments may reduce your take-home pay, and exiting the scheme early can have financial implications. Additionally, the availability of certain vehicles and the terms of the lease can vary between employers, so it's crucial to read the fine print.