Salary Sacrifice Car Lease

Car benefit solutions can help to drive down the cost of motoring for your workforce

Help support your people on their commute. Give them the chance to drive a brand-new, insured and fully maintained salary sacrifice car for a manageable fixed monthly amount through our company Car Benefit

A grey Tesla, lightblue Volkswagen and blue Audi lined up in a row

What is a Salary Sacrifice Car Scheme?

A car leasing salary sacrifice scheme gives your people the chance to drive a brand-new, fully maintained, and insured car for a fixed monthly amount taken from their pre-tax salary

With no deposits or credit checks required, employees can save on a range of inclusive driving packages as part of our salary sacrifice scheme, Payroll Pay®, combining tax efficiencies and full manufacturer discounts

Employee Chooses a Car

Employer Receives the Order Request

Simple Order Review and Approval Process

Employee Hits the Road with Ongoing Support

Silver tesla driving on a curving road toward mountains

How Does Company Car Salary Sacrifice Benefit Employers?

Provides a manageable way for employees to commute to and from work
Support green initiatives by improving access to electric vehicles
Helps to reduce absenteeism
Assists with attracting and retaining top talent
Supports a positive workplace culture
Vivup’s Lifestyle Protection offers a safety net for a wide variety of life events, including resignation, redundancy, and more

Car Lease Benefits For Employees

No deposits or credit checks
Combined savings on Income tax, National Insurance, manufacturer discount, fleet savings and more
Access to a wide range of in-demand models from leading manufacturers
Supports better budgeting with manageable salary reductions over a set period of time

Woman in car sitting on drivers side looking back at camera

Additional Perks Included in the Car Benefit Package

This benefit also provides peace of mind for your workforce by offering a complete driving package, with the following protections included as standard:

White shield icon with a white tick in the centre

Insurance

White pin locator icon on grey background

Full RAC Breakdown Cover

Replacement Tyres

MOT Maintenance

Road Tax

Servicing

Lifestyle Protections

24-hour Driver Support Line

Leading Brands in the Car Benefit Scheme

"As someone who introduced Vivup to a 37,000 head organisation - delighted that the excellent customer/client centric focus extends through to end user too. Thank you :)"

Vivup User, November 2023

Employee Salary Sacrifice Car Lease FAQs

Can my employees buy a car on a salary sacrifice scheme?

Yes, at the end of their lease period, employees can opt to either return their car or purchase it for a pre-agreed amount. Additionally, employees can also order a new car for delivery when their old car is collected

Is leasing a car cheaper than buying?

Yes, leasing a car through Vivup’s salary sacrifice car lease is cheaper than buying a car, as our benefit combines tax efficiencies with full manufacturer discounts. Reductions are made to employees’ gross salaries, so they can also make significant savings on both their Income tax and National Insurance, too

How much can employees save through salary sacrifice car leasing?

While the amount of savings will vary from person-to-person—making it impossible to say exactly how much employees can save through a car benefit—it is possible to save up to 40% through a salary sacrificed car

Do I need to tell HMRC about my car financed on benefits as an employee?

Our team cannot offer either legal or tax advice, and so we suggest that you seek a professional to answer any tax-related questions that you might have. However, you might also be able to find helpful information by visiting this company car page on the HMRC website

Is a salary sacrifice car a taxable benefit for the employer?

Yes, a car purchased through salary sacrifice would be deemed a Company Car Benefit in Kind, and taxed as such. We suggest that you seek professional assistance should you have any tax queries regarding this

What if an employee leaves during a car salary sacrifice scheme?

Normally, any outstanding payments would be taken from the employees’ final paycheck, but if the paycheck doesn’t cover the full amount, the liability transfers to the employer. However, our Lifestyle Protection option removes the risk of an employee leaving their role before completing payments. For a small percentage of every order value, Vivup will reimburse the employer for the final amount, making this a low-risk benefit

Can you salary sacrifice a hybrid car?

Yes, you can use salary sacrifice for a hybrid car. In fact, our Car Benefit is an excellent way to strengthen your organisation’s green initiatives by enabling your employees to access eco-friendly and electric cars

What happens at the end of a salary sacrifice car scheme?

At the end of their salary sacrifice car scheme, employees will have the choice to return their car, order a new car, or purchase the car at its market value

Permanent employees only, or if fixed term contract, this must be for longer than the Salary Sacrifice Agreement. This is a Hire agreement between the Employee and Tusker Ltd. All orders must be approved by the Employer. Order cancellation charges apply 18+ only.