Salary Sacrifice Scheme Set Up

Articles relating to AVC Salary Sacrifice Scheme

Salary Sacrifice Scheme Set-Up for Businesses – EV Leasing Made Simple with AVC

Introducing a salary sacrifice car scheme into your business is one of the smartest ways to boost your employee benefits package. Not only does it help you attract and retain talent, but it also supports your environmental goals and allows employees to access brand-new electric or low-emission vehicles in a tax-efficient way.

At AVC, we help UK companies, partnerships, and organisations of all sizes set up and manage fully compliant salary sacrifice schemes from start to finish. With over 25 years of experience in vehicle leasing and salary sacrifice implementation, we offer a hands-on, strategic approach that ensures your scheme is cost-effective, fully compliant, and tailored to your workforce.

How Does a Salary Sacrifice Car Scheme Work?

A salary sacrifice scheme allows an employee to give up a portion of their gross salary in exchange for a non-cash benefit—in this case, a fully maintained lease car. This arrangement offers significant tax savings to employees, particularly when the vehicle is a zero-emission EV or low BIK plug-in hybrid.

Setting up a compliant scheme requires contractual adjustments, and both employer and employee must agree to the new arrangement. AVC ensures that all documentation, processes, and calculations are properly managed, including safeguards to ensure that no employee’s salary is reduced below the National Minimum Wage threshold.

End-to-End Scheme Management by AVC

Unlike self-managed schemes or generic lease portals, AVC offers a fully managed salary sacrifice solution. From initial consultation to scheme rollout and day-to-day support, we guide your business through every step.

Our service includes:

  • Tailored scheme design based on your business size and employee needs
  • Employment contract and payroll guidance for HMRC compliance
  • Protection against early termination risks (e.g., employee departure, parental leave)
  • Pre-checks to ensure employees meet eligibility criteria
  • Assistance with staff communication and onboarding
  • Ongoing scheme support, renewals, and vehicle refresh options

Our team handles all the financial, legal, and operational aspects, so you can offer an impressive benefit without the admin burden.

Why Electric and Low-Emission Cars Are Ideal for Salary Sacrifice

Most employers choose electric cars (EVs) or plug-in hybrids for salary sacrifice schemes because of the ultra-low Benefit-in-Kind (BIK) tax rates. For example, a fully electric car in 2025 has a BIK rate of just 2%, making it extremely attractive for employees compared to petrol or diesel alternatives.

Our vehicle selection prioritises zero-emission and ULEZ-compliant models—and all leases come with optional packages that include servicing, maintenance, breakdown cover, insurance, and tyre replacement. This not only enhances the benefit for employees but also simplifies cost planning for employers.

Explore electric car salary sacrifice options

Tailored for Employers of All Sizes

Whether you’re a growing SME with 10 staff or a nationwide organisation with hundreds of employees, AVC can create a salary sacrifice solution that fits your structure and commercial objectives. We’ve helped businesses across retail, tech, healthcare, education, and logistics roll out successful car schemes that deliver value, engagement, and long-term benefits.

We’ll also help you understand how the scheme aligns with your sustainability strategy, corporate tax position, and employee retention goals.

Need More Guidance? Start with Our Salary Sacrifice Resource Centre

If you’re new to salary sacrifice or exploring how to position it within your business, visit our Information Centre for straightforward answers to common questions. Learn how tax savings work, how to structure a compliant agreement, and how BIK tax applies to various vehicle types.

How to set up a salary sacrifice car scheme

Get Expert Help with Setting Up Your Scheme

With AVC, salary sacrifice isn't just another HR initiative—it’s a professionally managed benefit that delivers real value to both employers and employees.

To set up a salary sacrifice scheme, request a demo, or talk to one of our corporate vehicle specialists, call 01902 353393 or use our contact form. We’ll help you take the next step confidently, with zero pressure and full transparency.

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