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Salary Sacrifice
Salary Sacrifice
Salary sacrifice could be your gateway to a brand new Hyundai EV. Not only are there financial benefits, but everything you could need is taken care of, from vehicle insurance to MOTs.
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Employee benefits
Hyundai offers an amazing range of cars which are ideal for salary sacrifice; from the compact INSTER with its distinctive, dramatic look, to the sleek and futuristic IONIQ 9, there’s a car that’s perfect for you.
A new Hyundai EV via salary sacrifice doesn’t just offer a fantastic driving experience, it could save you money. You pay lower tax and National Insurance (NI), whilst your Hyundai EV provides lower running costs with the advantage of being able to charge at home.
All-in-all salary sacrifice offers an array of benefits:-
- Competitive pricing – allowing you to access the strongest terms from a range of Salary Sacrifice scheme providers.
- Sizeable tax savings – you could save up to 60% on the monthly payments on a brand new car.
- All-inclusive motoring – maintenance, servicing, and breakdown cover can all be included.
- Insurance – The cost of this included your monthly deduction from your salary making life easier.
- Home charger – yes, it’s even possible to include a home charger in your deal.
- No hidden fees – no credit checks, no document fees or large upfront payments with salary sacrifice; what you see is what you pay. 2
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Employer benefits
What could be better than offering a popular employee benefit which saves your employees money, and actually saves you money too?
But there’s more. A salary sacrifice scheme enables you to meet your corporate and social responsibilities, as well as helping you reach your Scope emissions targets.
Hyundai’s amazing range of electric cars are perfect for salary sacrifice; delivering pure, unadulterated driving fun, for example from the Award Winning IONIQ 5N which offers true high-performance driving.
It’s not unusual for the person setting up the scheme to be the first to order a brand new car, straight off the production line when they look at the benefits to employers:-
- Free to setup, simple to run – stress free management of the scheme, as you sit back and let the scheme operator do the work.
- NI savings on every car – build up a pot of savings to spend within the business.
- Lower operating costs – EVs are cheaper to operate so your day-to-day costs will be lower too.
- Attract the most talented people and keep them motivated with low cost access to a brand new EV.
- Reduce risk – encourage your staff to drive a fully maintained and insured, brand new Hyundai EV and reduce the risk associated with business driving.
- Achieve your sustainability goals – offer an easy way for your staff to go electric, with the convenience of charging their car at home.
Contact Hyundai today to start your company’s salary sacrifice journey; we can work with you to identify potential specialist funding partners and ensure Hyundai vehicles are available for your staff to choose from.
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A modern, efficient vehicle range.
We can provide you with a versatile fleet that’s ready for your operational demands. By assessing your needs, we can support you to choose the vehicles that suit your needs and access them quickly.
- Needs-based assessment – upfront review of operational and budget requirements to find the right mix of fleet vehicles for your organisation.
- Access to Hyundai’s award-winning vehicle range – with Electric, Plug-in Hybrid and Hybrid or Petrol options to cover all operational needs and driver preferences.
- Priority stock allocation – through daily inventory reports, regular flow of new vehicles and end-to-end delivery logistics.
Want to find out more?
General FAQs
The advantage of salary sacrifice is that you do not pay income tax, or NI on the amount sacrificed, which is typically calculated as the cost to lease, maintain and insure the car.
Although company cars are subject to taxation as a benefit-in-kind, over the next few years the income tax, commonly referred to as "Benefit in Kind" or "BiK tax", due on zero emission electric cars, will be substantially less than the income tax and NI saved on the salary sacrificed.
You will therefore be able to drive a brand new car for a much lower cost than if you leased it personally from your net income, a lease on which you would also have to pay Value Added Tax ("VAT") at 20%.
Included as standard within a typical salary sacrifice is:
- The cost of a brand new electric car
- Maintenance, servicing, MOTs, replacement tyres and glass, breakdown cover and accident management.
Additional costs such as:
- Fully comprehensive car insurance
- Early termination protection
- Home chargers can also be included to maximise the income tax and NI savings available.
Because you are acquiring a car via your employer that is available for your private use it is classed as a company car; therefore it’s a benefit provided by reason of your employment on which you have to pay "BiK" tax, as you do on most benefits provided by your employer.
The BiK percentage for all zero emission cars is set at 3% for the 2025/26 tax year, after which it will increase by 1% in each of the following two tax years, rising to 5% by 2027/28. The rates will then increase by 2% per year for two tax years, reaching 9% by 2029/30.
The increases to BiK tax taking effect from April 2025 should be greatly outweighed by the significant, overall savings available under the Scheme.
If you are close to the threshold between tax rates (e.g. basic rate/higher rate) the tax you pay may have to be split between the two rates, but the example below is a guide to the calculation for the current tax year.
Example
If you are a basic rate taxpayer and choose a zero emission car with a list price of £25,000 then in 2025/26 your annual BiK tax would be £150, as calculated below.
(£25,000 x 3%) x 20%
List price BiK percentage Your tax rate
Your pay must not fall below the National Living Wage or the National Minimum Wage.
If, after taking account of salary sacrifice, your gross pay would fall below the National Living Wage you will not be able to join your employer’s salary sacrifice car scheme.
Student loan repayments deducted by your employer via Pay As You Earn (“PAYE”) are calculated by reference to gross earnings subject to Class 1 NIC.
As a result of your participation in the Scheme your gross earnings subject to Class 1 NIC will reduce but the taxable value of your new company car will be excluded when determining your earnings and it is therefore likely that your student loan repayments will reduce as a result of participation in the Scheme.
The cost varies based on the electricity price per kilowatt-hour (kWh), the car's battery size, and the charging location, whether it's a home charger, workplace, or public network. Home charging is the cheapest option with public rapid chargers being the most expensive.
Some domestic energy providers offer off peak, or smart, tariffs which make it even cheaper if you charge your car overnight.
Many scheme providers include early termination insurance to protect employees against the costs associated with early termination. Whilst the terms of the insurance might vary, these policies typically provide cover against an early termination charge arising as a result of resignation, accidental death, dismissal for gross misconduct, loss of your driving licence on medical grounds.
Some policies will also provide cover against early termination arising as a result of redundancy, as well as funding the cost of keeping your car when on parental or sick leave.
Given the range of policies available you should always ask your employer to confirm what risks are covered and whether there are any exclusions; for example many policies do not provide cover for up to 6 months after your car is delivered.
