The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted in the vehicle finance market regarding Discretionary Commissions. We want to inform our customers that Anglo Scottish Asset Finance acts as a broker, not a lender, and if you believe you have been impacted by this issue, please contact your car finance lender. For further information, please click here

The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted

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Salary Sacrifice 

Salary sacrifice car schemes are an increasingly popular method that allows employers to offer employees a new vehicle at a lower cost with a tax-efficient payment method.

What is salary sacrifice?

A salary sacrifice car lease is an option for your employees to purchase new cars by ‘sacrificing’ a portion of their salary (before tax) in exchange for a non-cash benefit, such as a brand new lease car.

The schemes are popular with both employees and employers due to the cost-saving benefits they can offer.

What does the scheme offer?

  • A brand-new car every 2, 3, or 4 years
  • Income tax and NI savings for employees
  • Large potential NI contribution savings for employers
  • Access to corporate buying terms for car and servicing
  • No deposit required – fixed budget monthly rentals
  • Unlimited Tyre Replacement/Repair (even due to accidental damage)
  • No credit checks to undergo for the employee
  • Includes road tax (if applicable) for the whole contract
  • Includes all Servicing & Repairs
  • Comprehensive Breakdown Cover
  • VAT savings for VAT-registered organisations
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Need help? Call us on 0191 410 4776

As an established provider of car and business asset financing, we’re delighted to bring our car leasing schemes to both the public and private sectors, offering you, and your employees a company car scheme that enables users to acquire a brand-new car every 2 or 3 years under Salary Sacrifice.

The easy-to-use scheme has been designed to ensure minimal involvement from an employer, with maximum benefits for the employee, providing a flexible alternative to the traditional “company car” scheme.

Overview of the Salary Sacrifice Scheme


For Your Employees

  • All vehicles come with all servicing/maintenance/breakdown cover/accident management/tyre replacements and are fully comprehensive.
  • Payments are made by giving up part of their monthly salary – this is where big income tax and NI savings are made.
  • Access to corporate bulk vehicle and services discounts that are unavailable on a personal basis.
  • VAT-registered businesses can reclaim an element of the monthly rental which is passed on to the employee as a saving.
  • All vehicles supplied are brand new with no deposit nor credit check for your employee.
    For employees that typically drive long-distance, where an electric or hybrid vehicle would be unsuitable, low-emission diesel and petrol cars are also available.

For Employers

  • There are no set-up fees or ongoing costs to keep it running.
  • If an employee takes a cash allowance in place of a ‘company car’, ALL of the allowance can go towards payments for the vehicle – unlike a personal lease where payment has to come
    from net pay after the tax has been deducted.
  • This scheme also helps to meet your organisation’s carbon emissions target by switching to low Co2 emission cars or electrics.
  • There may be pension contribution savings dependent on the type of pension scheme you operate
  • Large NI contribution savings for the business depending on the vehicles chosen (Electric and Hybrids).
  • Easy to use online administration with full control over vehicle ordering via an authorised and nominated senior staff member.

Benefits of Salary Sacrifice

How does Salary Sacrifice work?

Employees save money by exchanging part of their salary before it is taxed; thereby reducing the amount of tax and national insurance they pay on the remainder. As the vehicle is classed as a ‘Company Car’ (’Benefit in kind’) ‘company car tax’ must be paid at the prevailing rate for the vehicle (via an amended tax code) however this is much less than the savings to be made in income tax and NI – especially for zero-emission electric cars. At the end of the contract, the keys can either be handed back and collected or a new car can be ordered.


To be eligible, employees must have completed at least 6 months of employment with you to qualify. They must also consider whether they are going to remain in your employment during the 2, 3, or 4-year contract that they choose, as with any retail/personal finance arrangement they would be liable for an early termination charge up to a maximum of their normal final salary if they leave before the end of the contract period.

Want to know more?

Contact our team today.

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