Salary Sacrifice

A Smarter Way To Drive Electric

Salary sacrifice is becoming an increasingly popular way for employees to drive a brand-new electric vehicle through their employer while benefiting from lower monthly costs and reduced tax contributions.

The scheme works by allowing employees to exchange part of their gross salary for an electric vehicle lease. Because payments are taken before tax and National Insurance contributions, many drivers can make noticeable savings compared to traditional personal leasing or finance agreements.

For employers, salary sacrifice can also provide a valuable employee benefit while supporting sustainability goals and reducing company National Insurance costs.

Whether you're exploring salary sacrifice for the first time or looking to introduce electric vehicles across your business, our team is here to help make the process feel clear and straightforward.

How Does Salary Sacrifice Work?

Salary sacrifice allows employees to lease an electric vehicle through their employer using deductions from their gross monthly salary.

The monthly payment often includes much more than just the vehicle itself. Depending on the agreement, packages can include servicing, maintenance, breakdown cover, insurance and road tax which ultimately helps make budgeting simpler and more predictable.

At the end of the agreement, the vehicle is returned and employees can choose whether to explore a new agreement depending on the options available through their employer.

Benefits For Employees

• Lower monthly costs through tax and National Insurance savings
• Access to a brand-new electric vehicle
• Fixed monthly budgeting with optional maintenance packages
• Lower running costs compared to petrol and diesel vehicles
• Access to the latest technology and safety features
• No concerns around vehicle depreciation or resale value

Benefits For Employers

• A valuable employee benefit that can support recruitment and retention
• Potential National Insurance savings for the business
• Support for sustainability and environmental targets
• Opportunity to encourage the transition towards lower-emission driving
• Flexible options for businesses of different sizes​

Support From TMS Motor Group

At TMS Motor Group, we understand that salary sacrifice can feel unfamiliar at first, especially for businesses exploring electric driving for the first time.

Our team is here to help explain how the process works, discuss the available vehicle options and guide both employers and employees through the journey from initial enquiry through to delivery.

Because we represent multiple brands and vehicle types, we can help you explore a wide range of options and find a solution that suits your business and your drivers.