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To help answer any questions you have about our salary sacrifice scheme, we have provided answers to the frequently asked questions split by the below categories.
Eligibility on Pay and Benefits
Similar to other well-established schemes, such as the “Cycle to work scheme” Lease Electric’s EV Salary Sacrifice Scheme enables you to acquire a brand new EV, of your choice, in exchange for part of your salary.
If you choose to be provided with a vehicle you agree to a reduction in your monthly basic salary (your salary before taking into account, any salary sacrifice arrangement) by an amount equivalent to the monthly vehicle rental outlined when ordering your car. This vehicle value will not usually change over the course of the agreed period that you keep the car.
By entering into this arrangement, you will typically save on Income tax and National Insurance Contributions (NlC) the amount of which will vary dependent on the type of vehicle you choose. Under the arrangement, you will receive an Adjusted Salary (i.e. your salary after the salary sacrifice has been taken into account). Usually, the sacrifice is made in return for some form of non-cash benefit, which in this case is a car and is equivalent to the monthly lease cost. In the UK, many tax-efficient benefits are provided via salary sacrifice such as childcare, pensions, cycle to work etc. The sacrifice is achieved by varying your terms and conditions of employment for the term you choose to benefit.
The benefits of sacrificing some of your gross salary for a company car are reduced employee tax and National Insurance Contributions (NIC) depending on the type of vehicle chosen, access to large fleet discounts, possible VAT savings, no credit checks to undergo, no deposit to find and the use of a fully maintained and insured lease vehicle for the period of the lease.
As the cost of the car is taken from gross salary, you may pay less income tax and NI on your remaining salary. Under HMRC rules, the benefit (i.e. the car) is classed as a ‘benefit in kind’ (BIK) and you will become liable for company car tax but for low emission cars, this is often much lower than the tax and NIC saving you make on your lower salary.
A salary sacrifice scheme is extremely comprehensive and includes the following for the life of the contract;
You just have to add electricity and/or Fuel.
* We have a Fair Play policy on tyres. This means that damaged tyres will be replaced inside the maintenance budget. Replacements in the event of abuse, neglect, theft or vandalism will be recharged.
The maintenance scheme does not cover driver abuse, damage or replacement as a result of neglect. These charges will be billed via a vehicle services invoice.
Depending on the vehicle you choose, you will save on income tax, National Insurance (NI) and possibly VAT (that your company reclaims and passes on to you in the form of a lower rental) pension contributions (subject to the type of pension scheme your employer operates) on the salary sacrificed, the amount that you save depends upon your personal tax and national insurance position.
The monthly cost is fixed for the contract term. Your monthly rental will only change if we mutually agree a change. For example, if there is a change in overnight postcode, an increase in your contracted mileage or if the vehicle is involved in two or more at fault incidents in a 12-month period.
No, the tax, National Insurance Contributions (NlCs) and fleet discount savings are only available via a salary sacrifice arrangement through your employer.
Once you have chosen your car, your employer will enter into a Contract Hire agreement for that car and will then provide it to you under the salary sacrifice arrangement. The car is classed as a “company car” for tax purposes and will be treated as a “benefit in kind”.
Yes, providing the overall amount of salary sacrificed does not take you below National Living Wage and subject to authorisation from your employer.
In order to benefit from the tax savings, HMRC requires that the salary sacrifice is a change to your terms and conditions, reducing your contractual salary, rather than something employees can simply opt in and out of. For this reason, employees are required to enter the Scheme on a longer-term basis. Entering into any long-term financial commitment should be considered thoroughly. Procuring a new car via salary sacrifice is no different.
You should satisfy yourself that a company car will meet your lifestyle needs throughout the duration of the contract and that you understand the associated obligations.
To be eligible for the EV Salary Sacrifice Scheme, you must be a permanent employee who has successfully completed their probation period.
All participants must meet the insurance eligibility criteria. Insurance is a critical component of the scheme, and failure to meet these criteria may affect your ability to participate.
Please note that participation in the scheme is not allowed if the amount sacrificed reduces your gross pay below the National Living Wage. Additionally, you cannot join if the salary sacrifice amount is deemed unaffordable; you need to ensure you can comfortably afford the chosen vehicle and commit to the term of the agreement.
This employee benefit is designed to reward loyal staff, so it's crucial to consider whether you plan to remain with us for the duration of the selected contract. Exiting the scheme voluntarily will incur termination costs.
No, however, you will be unable to participate in the car scheme if the amount sacrificed results in your salary falling below the National Living Wage limit.
Yes, you can take a car for yourself or another member of your household as long as they too have a full valid driving licence and meet the insurance criteria.
If you are on a fixed-term contract you can participate provided that the agreement ends prior to the end date of your fixed-term employment contract. A minimum 24-month Car Salary Sacrifice Scheme contract applies. Your employer must agree to you joining the Salary Sacrifice Scheme and authorise your order.
If your salary falls below the LEL, your entitlement to certain state benefits may be adversely affected. If your earnings are likely to fall below the LEL, you should carefully consider your position before you participate in the Scheme.
There are two elements to the state pension, the basic element and the second element. The basic is not affected by salary sacrifice as earnings will not be reduced low enough.
The second element is an adjusted amount depending on what you earn above the minimum wage, known as the Additional State Pension or the State Second Pension. A salary sacrifice may reduce contributions for this element for the duration of the time that you participate in the salary sacrifice, although the impact on your final state pension is likely to be negligible. You should seek professional advice if you are unsure of the impact on your pension benefits.
Most state benefits will not be affected by participation in salary sacrifice, unless participation in the car scheme means that your salary after the sacrifice is brought below the National Insurance Contribution (NlC) Lower Earnings Limit. To protect your entitlement to certain future state benefits you cannot participate in the salary sacrifice arrangement if your Adjusted Salary were to fall below the NIC Lower Earnings Limit.
From a pension perspective, your pensionable salary will reduce and therefore your own and any contributions by your employer may reduce accordingly. If you are close to retirement, participation in the scheme may affect your salary for pension calculation purposes and you should therefore consider avoiding any salary sacrifice in the calculation period. Please seek advice from your pension administrator.
Other payments or benefits that you receive from employment are unlikely to be impacted by the salary sacrifice. If you are unsure, please check with your Human Resources department.
The provision of a car under a salary sacrifice arrangement constitutes a Company Car arrangement and therefore triggers a benefit in kind charge. The benefit is calculated by reference to a percentage related to the CO2 emissions and list price of the vehicle. This CO2 related percentage determines the level of taxable benefit in kind an employee is charged by HMRC, i.e. the lower the emissions the lower the effective tax rate.
For precise tax costs on your chosen vehicle, please refer to your individual vehicle quotation.
HM Revenue & Customs (HMRC) is keen to encourage drivers to choose vehicles with as low CO2 emissions as possible.
One of the most significant tax advantages of choosing an electric company car in the UK is the low benefit in kind (BIK) rate that employees pay. For the 2024 tax year, the BIK rate for electric cars is set at 2%. From 2025, this is scheduled to increase by 1% each subsequent year until it reaches 5% in the 2027/28 tax year.
In the Autumn Budget 2024, the Government has established Company Car Tax rates for 2028-2029 and 2029-2030.
For fully electric vehicles, which produce 0 CO2 emissions, benefit in kind will rise by 2 percentage points each year, reaching 9% by 2029-2030.
For a complete breakdown of BiK rates by year, refer to our BiK rate table.
The amount you sacrifice will remain the same but if the company car tax rate increases, the additional tax will become payable and normally collected via a change to your tax code. The company car tax figures shown on the quotation pages are usually based on an average of the tax percentages in each financial year which your contract covers.
Your employer will notify the Tax Office when you take delivery of a car however it is ultimately YOUR responsibility to ensure they are notified. The Tax Office will issue a tax code change which payroll will apply in order that the benefit in kind tax can be collected monthly from your salary. In some instances where HMRC cannot process the car details for new cars within the tax coding before the end of the tax year, there may be some adjustments regarding the collection of tax following the tax year-end.
We strongly recommend that you telephone your local revenue office once your vehicle has been delivered and advise them that you now have a company car. They will need you to provide them with your national insurance number the vehicle description, P11d value and g/km CO2 emissions. A letter can be provided on delivery of your car which can be sent to your tax office and contains all the information they need to amend your tax code.
You may see the reduction in your salary within the month your car is delivered dependent on the date delivered and payroll cut-off dates, alternatively the reduction will take place in the following month.
Yes. For the car scheme to be effective we will need to make amendments to your Terms and Conditions of employment in accordance with the provisions of Section 4 of the Employment Rights Act 1996. You will be agreeing to these changes when you sign the vehicle order form and employee agreement.
Yes. You will be able to participate in the car scheme providing your Adjusted Salary (post sacrifice salary) is not reduced below one of the following:
Eligibility is subject to the combined amount of all salary sacrifice arrangements not resulting in your Adjusted Salary falling below the above thresholds.
You will be required to continue to make payments for your car. If you have insufficient salary to make these payments, you will need to make alternative arrangements with your employer.
If you have a student loan it is recovered at a rate of 9% on gross annual earnings above £19,390 per annum (for Loan Plan 1, 2020/21) the earnings threshold. Under a salary sacrifice arrangement, you are agreeing to reduce your gross salary. This will result in a reduction in the amount of your student loan recovery where your gross earnings before the salary sacrifice are above the earnings threshold. If, after taking into account the salary sacrifice arrangements your gross earnings fall below £18,935 no deductions for student loans will be made.
If your taxable gross salary will be reduced, payslips and end of year P60 forms will show a lower amount. This may affect your ability to get credit, for example, it may affect a mortgage application if the lender uses income multiples.
Many lenders are familiar with the concept of salary sacrifice When responding to any lender’s request for a reference, your employer could confirm the amount of your reference salary, that is your salary before the application of the salary sacrifice.
We would be willing to provide confirmation of your pre-sacrifice salary for borrowing purposes.
Importantly, as there is no credit check involved in joining the scheme there will be no record of any search on your credit history.
Test drives can often be arranged directly with the vehicle manufacturer via their website or through a local franchised dealer. You must arrange your own insurance for test drives unless this is provided by the dealer.
You can obtain quotes on any make or model of vehicle, but it should be noted that vehicles with higher CO2 emissions will be less attractive. If a vehicle is in the Ultra-Low Emission Vehicle (ULEV) category they are usually an electric vehicle (EV). This type of vehicle works extremely well on the scheme as the Benefit-in-Kind (BiK) payable Company Car Tax is more favourable than hybrids or petrol and diesel vehicles.
When requesting a quote you will be required to enter your anticipated annual mileage. The higher the mileage, the higher the cost will be to take into account additional depreciation and higher servicing costs etc.
You should set your mileage level to cover the amount you expect to drive. If at the end of the contract you have exceeded the agreed mileage level, you will be required to pay an excess mileage charge which will usually range between 5p and 10p per mile depending upon the value of the car you choose.
On the first and second anniversary of your vehicle contract it may be possible to revise the contract mileage up or down to take into account changes in the amount of driving you do. The monthly rental can therefore increase or decrease for the remainder of the contract but avoids any excess mileage situation and having to pay a large lump sum at the end.
You can add any factory fitted options you wish to the vehicle.
Yes. Changes can occur in the amount of discount offered by manufacturers and quotes will take account of the changing cost of particular cars together with changes to finance rates.
All quotes will be valid for a period of 30 days but in order to accommodate our order sign off process, the leasing company will refresh all quotations at the point of order if the above time limit has been exceeded. You will then have the opportunity to amend your car selection if the price has increased.
Yes, the scheme is restricted to either 24, 36 or 48 months.
Once your order has been authorised the sacrifice will be honoured excluding manufacturer price increases or exceptional circumstances. If the rate of VAT increases or VAT rules change during the period that the car is provided, the funder reserves the right to adjust the salary sacrifice arrangement to reflect the additional net cost of VAT that they are incurring or are unable to recover, in providing the car.
To complete the order for your vehicle you will need to:
The above documents will be emailed to you once you have completed online order. It will also need to be countersigned by your employer.
No, one of the main advantages of the scheme is that you will not be required to pay any deposit towards your vehicle.
Cars are normally factory ordered via a preferred supplier network of dealership. These are generally manufacturer franchised dealers. None of the cars are used or are grey imports. A factory order will often take between 8 and 14 weeks but is dependent upon the type of vehicle being ordered.
Your quote includes the cost of your chosen vehicle, and the following for the life of the contract
You just have to add electricity and/or Fuel.
* Our Funder has a Fair Play policy on tyres. This means that damaged tyres will be replaced inside the maintenance budget. Replacements in the event of abuse, neglect, theft or vandalism will be recharged.
Road tax is included within the scheme for the full term at the prevailing rate at the time of delivery. Your Road tax will be automatically renewed online. As the driver of the vehicle it is your responsibility to ensure that your vehicle has valid road tax, to confirm this you can visit the following web site www.gov.uk/check-vehicle-tax If road tax rates have increased since you ordered your vehicle, you will be charged the difference between the new rate and the rate applicable at the time of order.
Insurance is provided via Lloyd Latchford, a motor insurance broker which specialises in policies suited to salary sacrifice schemes. At the time of writing the policy is underwritten by Aviva or Allianz.
Premium is a true fixed price for the lifetime of your agreement*
Social, domestic, pleasure and commuting cover, including use by the Policyholder in connection with their Employer’s business is covered as standard. Other forms of business use for the policyholder and/or spouse/civil partner may be considered on a case by case basis but do not order a car without checking first. Any other drivers listed on the insurance (not partner/spouse) will only be covered for social, domestic and pleasure use
Unlimited cover for audio and navigation equipment that is permanently fixed to your vehicle and has no independent power source
Personal belongings in your car up to £350
Replacement locks
Damage to your vehicle following incorrect fuelling (No cover for removal of incorrect fuel/ refuelling of the car)
Emergency medical treatment
Medical expenses, up to £350 per person
Accident transport/vehicle recovery
Child car seat cover, up to £100 per seat
Free extended use of your car in the EU, up to a period of 60 days
Courtesy car for the duration of repairs if in the event of an accident the car is repaired by an Aviva approved repairer.
If the vehicle is stolen and not recovered or if it is declared a total loss, a courtesy car is provided for up to 14 days or until a settlement offer is agreed (whichever is earlier)
If there is any fault claim you will be required to pay an excess. Current excess rates will be shown with your insurance quote on the website. The excess is usually less than typical personal insurance policies.
* Premium fixed subject to any additional driver requirements in the term.
An incident means an event or accident resulting in damage, loss or theft of the lease vehicle, damage to third-party property, personal injury or death of a third party.
An incident will be considered as fault if unable to recover the costs from the responsible third party. This includes theft, fire, vandalism and weather events.
Where it’s been established that you aren’t at fault, the Funder will attempt to recover costs from the responsible party. This could involve legal proceedings where you may need to give evidence to support the claim in court.
If the losses aren’t recoverable due to any act or omission by you or your driver, then the Funder reserves the right to invoice any losses to you.
As with any insurance policy, competitiveness can depend upon a number of factors including the car, the postcode where it is kept, the ages of the drivers etc. Overall, the insurance premiums should be in line with the market. However, as the cost of the insurance is included within the salary sacrifice, the net cost to you after tax and National Insurance should always be competitive.
Don’t forget as well, the insurance premium is fixed for the life of the contract period so you do not have to go looking for renewal quotes every year!
At the time of placing your vehicle order, you must provide the details of yourself and up to two additional named drivers to be included on the insurance policy for the duration of the contract. Lease Electric will request the DVLA Check Code for all drivers.
To be eligible, all drivers must meet the following criteria:
Category ‘A’ Convictions show on online licence checks beginning with the following codes:
CU or LC or MW or PC or SP or TS.
Please note, if you have any of the following then you DO NOT meet the eligibility criteria for this EV Salary Sacrifice Scheme:
Any conviction which has resulted in a ban in the last 5 years (including any of the conviction codes above).
A conviction in the last 5 years with any of the following letters on your licence:
AC - BA - CD - DD - DG - DR - IN - MS - TT - UT
If you do not meet the above criteria, unfortunately, you may not be eligible to participate in the scheme
Please note that insurance terms may change from time to time and you should check with your account manager for the latest information.
Should any of your circumstances change, or you no longer meet the above eligibility criteria during the term of your lease, please notify Lloyd Latchford as soon as possible.
Only those named on your Insurance policy can drive your vehicle.
No, the insurance policy does not cover any driver who does not have a full licence and the vehicle may NOT be used for the tuition of a learner driver.
Insurance is built into the monthly rental and automatically activated upon delivery of the vehicle.
You will receive a certificate of insurance, welcome letter and policy booklet. This document pack includes your full insurance details, your responsibilities and what to do if you need to report an accident, incident or damage to your vehicle.
Please get in touch with the Funder at least 14 days in advance of travel and provide details of your travel destination and dates, as well as details of drivers and any additional drivers. They will provide you with a Vehicle on Hire certificate (VE103) to replace the registration document. This is a legal requirement. A standard fee of £15 plus VAT applies for this document. An insurance certificate, confirming that the vehicle is insured to be taken out of the country for the period of travel, will be provided to you.
If you already have a valid VE103 from a previous trip, you’ll still need to contact the funder to get a new insurance certificate. A Green card will also be provided if required for overseas travel.
If you’ve been delayed in your return and your insurance certificate is due to expire, you’ll need to contact us for permission to extend the cover and we’ll issue you with a new insurance certificate. It will be your responsibility to print this document and keep it in the vehicle.
If you are planning on taking your vehicle overseas, please call 0344 879 6000.
You will be liable for company car tax as the vehicle is classed by HMRC as a ‘Benefit in Kind’.
The amount of company car tax payable is calculated by reference to the list price of the vehicle and its CO2 emissions. The list price is multiplied by a sliding scale percentage according to CO2 emission levels. This calculation will determine the taxable benefit in kind.
To calculate the tax payable you need to multiply the taxable benefit in kind by your personal tax rate. The company car tax will be collected via your tax code. Your employer will advise the tax office that you have a company car. To ensure that your tax code is changed promptly, we recommend that you telephone the tax office to have your tax code amended. You will need your National Insurance number the vehicle description, P11d value and g/km CO2 emissions ready to ensure HMRC can locate your tax record.
The quotation provided will estimate how much company car tax you will have to pay for the current tax year. However, you must undertake your own investigations as to the tax impact of the scheme and consider any future increases in company car tax. The Government generally set company car tax rates three years in advance. Full details of the tax bandings for this and future financial years as published by HMRC.
If the vehicle is yet to be delivered, you may cancel the order but there may be a cancellation charge payable. Please contact the Lease Electric team.
This varies greatly depending on the car chosen. The waiting time can, on average, vary anywhere between 2 and 20 weeks. Some very popular vehicles which are in demand can be even longer. Estimated delivery date will be available once the order is placed.
When you choose your vehicle you have the opportunity to choose the annual mileage. If you return your vehicle with more than the selected mileage you will be liable for an excess mileage charge to cover the expense of the additional depreciation and servicing costs that will have been incurred because of the additional mileage. The excess mileage rate at which you will be charged will be included on the quotations.
There will be no change to the salary sacrifice amount. It may be possible to re-write the contract after the first 12 months of the contract which may reduce the monthly rental.
You will need to pay any costs arising due to:
As with a private vehicle, if the car is damaged by you and no claim is made under the motor insurance policy, you must repair the vehicle at your own cost. Any repairs not undertaken will be charged to you at the end of the term. All charges are made in accordance with BVRLA (British Vehicle Rental & Leasing Association) fair wear and tear guidelines.
You are committing for the term you select. Should you wish to return the vehicle before the end of the contract, please get in touch with your Account manager, who will be happy to discuss the process and any financial implications with you. Please note that you’ll be liable to make a payment in accordance with your agreement.
If you leave employment for any reason you must return your car. The only exception is if your new employer is prepared to novate the lease into their name and operate a salary sacrifice arrangement for you.
If you leave voluntarily or are dismissed for disciplinary reasons before the end of the term, you will be required to pay a fee for early termination from your final full salary. The amount of the fee will depend upon how much your vehicle costs to lease and the remaining term on your contract. If the fee exceeds your final salary payment, you may be required to reimburse your employer for any excess. If you are made redundant, we may cover any early termination costs arising depending on the severance package agreed. If after the return of the vehicle there are any damage or excess mileage charges due, these will be charged to you.
If you are forced to retire due to Ill health, providing the vehicle was not damaged or exceeded its contractual mileage (pro-rata) there would be no termination charge. However, dismissal resulting from incapability would result in an early termination charge being levied against you.
You can simply return the vehicle with no termination penalties.
You are responsible for ensuring that the Manufacturer’s recommended servicing schedule is adhered to and it is imperative that you do so to ensure that the warranty is not invalidated and avoid incurring any additional charges.
If you need any servicing work or tyres, please call 0344 879 6000
You can also book online, using the online Driver Portal.
The cost of all routine work that will occur during the contract term based on manufacturer guidelines is included in the car scheme. The scheme does not cover driver abuse, damage or replacement as a result of neglect. These charges will be billed via a vehicle services invoice.
For insurance services to remain valid the first and subsequent service of the vehicle must not be exceeded by more than 500 miles or 14 days.
You’ll need to contact the Funder at the earliest opportunity, ideally within 24 hours of the incident taking place, making sure that it is safe and legal to do so. Please call the Funder's Driver Support Contact Centre on 0344 879 6000 (24/7 365 days a year) and select ‘report an accident’.
You must also notify the Insurer, call: 0343 515 8804
Our Accident Management partner will then record the relevant details and either get your vehicle recovered if it’s immobile or allocate a repairer.
The cost of tyres is included. If you need any tyres, please call 0344 879 6000
You can also book online, using the online Driver Portal.
Tyres can also come from Kwik Fit / Kwik Fit’s mobile service: 0330 123 1520 Kwik Fit’s Online Fleet Portal , you must inform them that the vehicle is maintained.
We have a “Fair Play” policy on car tyres. This means that damaged tyres will be replaced inside the maintenance budget. Replacements on commercial vehicles or in the event of abuse, neglect, theft or vandalism will be recharged.
Notify the police and then contact our Funder's Contact Centre by calling 0344 879 6000. If the vehicle is recovered, please let us know immediately and we’ll arrange for any repairs to be made if needed. If the vehicle hasn’t been recovered after 21 days, then we will terminate your agreement in line with our total loss process and your monthly rental liability will cease for any future rentals. At this point, we will invoice the relevant excess charges to you.
If there has been an act, omission or negligence by you or your driver which contributed to, or resulted in, the theft of the vehicle (e.g. if the keys are left in the car), then the termination costs will be borne by you. If the vehicle is recovered and sold or any monies are received later on, these will be credited back to you up to the value of the charge you received.
All vehicles include roadside assistance so whether you break down at home, or on the road you are covered.
Please call our Funder's designated helpline on 0344 879 6000, where the team will assist you with your vehicle and send a recovery van where necessary.
Any parking, congestion charges or other fines incurred by you whilst using the vehicle will be your responsibility.
Any fines paid will be recovered from your net salary.
Insurance is provided upon the information provided by the Employee at the time of quotation.
The Employee is responsible for all administration in relation to the motor insurance policy, including making claims and giving prompt notification of any changes in circumstances which may affect the cover or premium.
As the salary sacrifice is fixed, you will be required to pay the additional premium in full.
If the car is involved in an accident with a third party or you need to claim for any other reason, you must notify the Funder and Insurer. If the car needs to be recovered or a courtesy car is required then the insurance company will take care of this.
You’re entitled to a courtesy car for the duration of the vehicle repair subject to the repairer’s conditions. You’ll also need to make sure that the courtesy car is insured by the repairer. Please note that this will not be a like for-like replacement of your existing lease vehicle.
If you’re involved in an incident where the third party has been identified and proved at fault, you may be provided with a vehicle similar to your current lease through our Funder's non-fault hire provider, subject to acceptance.
If your vehicle is stolen and not recovered, you will not be provided with a replacement vehicle.
If the repairer has a courtesy car available, then you can utilise this whilst your vehicle is being repaired, subject to their conditions.
Please note that insurance should be arranged through the repairer.
You will be provided with all of the necessary information on how to make a claim when the policy is activated. The process is similar to any other personal motor policy. You will need to fully cooperate with the insurance company and Funder with regard to any claims made by you or against you.
If the vehicle is deemed a total loss as a result of an incident, The lease will be terminated within 48 hours of the Insurer's assessors confirming that the vehicle isn’t economical to repair.
No, company car tax legislation incorporates the provision of ancillary services such as maintenance and insurance.
As with any other insurance policy, you will be required to provide proof of your no claims bonus. As this is a commercial policy you will not accrue a normal private car no claims bonus.
However, at the end of contract - The Insurer can provide a driver history letter which will detail the number of years ‘claim free’ for the driver for the duration of the agreement. This will be available upon request. Please note that we cannot guarantee all insurance companies will accept the documentation we provide.
The motor insurance under the car scheme does not cover a courtesy car. You will need to ask the garage to insure the car or they may offer a cost or damage waiver.
The driver will need to ensure they comply with the legal requirement around the weight they will be towing. Any damage to a trailer or caravan is not covered. However, you will be covered for any damage caused to a third party in accordance with UK legislation.
When your car is delivered, your employer will amend your salary to allow for the salary sacrifice and shortly after this, HMRC will notify your employer of your new PAYE code. This will affect your payslip in several ways. Firstly, the Gross Salary Exchange value will appear on your payslip. In addition, your tax and NI values will change, as will your tax code.
At the end of the term, you will be required to return the vehicle. If you are ordering a replacement on the same scheme then we will try to ensure that this coincides with the delivery of your new car. To ensure that your new car arrives on time, you should look into ordering your new car at least four months in advance. Once your old vehicle has been returned, any damages or excess mileage charges will be due from you.
