How to Get a Car on Salary Sacrifice: Step-by-Step Guide

With up to 60% savings on your dream electric car, salary sacrifice is one of the smartest ways to make the switch to electric. It’s simple, tax-efficient, and, when done right, completely hassle-free.

Still, if you’ve never used a salary sacrifice scheme before, the process can sound a bit confusing. Who applies? What do you actually need to do? And how long does it all take?

This guide walks you through how to get a car on salary sacrifice, step by step, from checking your eligibility to having your new EV delivered to your door.

How to get a car on salary sacrifice: 6 simple steps to follow

Salary sacrifice through a provider like loveelectric is simple and easy. But there are a few steps to the process you’ll need to follow:

Step 1: Confirm your employer offers the scheme

Salary sacrifice only works through your employer, so the first step is checking whether your company already partners with a salary sacrifice provider. There are several providers on the market including loveelectric. 

If they do, great. You’re already on your way. 

Here’s what you need to check:

1. Ask your HR department if a car scheme is available
2. Confirm which provider your employer uses
3. Verify your eligibility status within the company

If your employer doesn’t yet offer a scheme, don’t worry. There’s a section later in this guide that explains how to get your employer on board.

Critical eligibility requirement: Your salary after the sacrifice deduction cannot fall below the National Minimum Wage. The rate you’re entitled to will depend on your date of birth - view the Official National Minimum Wage rates here.

Step 2: Browse and choose your car

Once your company’s scheme is confirmed, it’s time for the fun part: choosing your car.

What's typically available: New and used electric vehicles (most tax-efficient option), hybrid vehicles (with some providers but at loveelectric we’re committed to electric only), some conventional petrol/diesel cars (although the BiK rate can be as high as 37%).

Through loveelectric, you’ll have access to every make and model of EVs on sale in the UK, from compact city cars to premium SUVs. You can even explore Reloved® used EVs if you’d like a lower monthly cost with the same benefits. See exactly what’s on offer and their costs here.

Advantages of getting an EV: BIK rates of just 3% for electric cars in 2025/26, Government grants up to £3,750 on eligible models, lower running costs and maintenance

A few things to consider as you browse:

• Monthly budget: Your savings will vary by car price and tax band.
• Driving needs: Think about mileage, boot space, and whether you’ll use the car mainly for commuting or longer trips.
• Extras: You can add options such as a home charger or loveelectric’s EV charge card for cheaper public charging.

Step 3: Agree contract terms

Once you’ve chosen your car, your employer and the provider will confirm the contract details. This sets out how long the lease will last, what’s included, and how much of your gross salary will be sacrificed each month.

What any decent scheme should include as standard:

• Fully comprehensive car insurance
• Breakdown cover
• MOT, maintenance package and servicing 
• Tyre replacement
• No upfront payments or deposits required

With Loveelectric, your monthly cost is clear and all-inclusive, covering insurance, servicing, maintenance, tyres, breakdown cover, and even early termination protection for your employer. There are no hidden fees or upfront deposits.

Before signing, check the following:

• Lease duration – typically 24 to 48 months
• Mileage allowance – make sure it suits your usual driving habits
• Salary deduction – confirm it won’t take your pay below the National Minimum Wage
• Additional options – such as a home charger or Loveelectric Charge Card

Step 4: Salary sacrifice is setup in payroll

Your employer's payroll team will implement the salary deduction once your application is approved.

Each month, the cost of your lease is deducted from your gross salary before Income Tax and National Insurance are applied. This is what generates your savings. Your payslip will show a lower gross salary, a small Benefit-in-Kind (BiK) tax charge for the car, and a higher take-home pay compared to a standard lease.

Here’s an example: 

With loveelectric, your payroll team receives a simple monthly report showing the exact deduction amount for each participating employee. It’s designed to slot straight into most payroll systems, meaning minimal admin for HR and finance.

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Step 5: Take delivery of your car

Most salary sacrifice providers, including loveelectric, will deliver your vehicle directly to your door. In some cases, especially with Tesla or other premium brands like Porsche, you may be asked to collect it from a dealership. Either way, it’s a quick and seamless handover.

What happens on delivery day:

• The vehicle is delivered to your workplace or home address
• You take a few minutes to inspect it and make sure everything looks perfect. Contact your provider right away if there’s anything you’re unsure about.
• All documentation will be handed over by the delivery driver
• Insurance and breakdown cover will be active from the point you sign the delivery note

For electric vehicles: You may have the option to include a home charger installation within your package, or you can arrange this separately once the car arrives. If home charging isn’t an option, check your access to local public chargers. There may also be the option to add a Charge Card to your scheme, netting you up to 60% off charging costs at home or out on the road. Learn more about our offer here.

And that’s it! You get your car and drive. 

Key things to consider when choosing a car

Salary sacrifice is one of the most affordable ways to drive electric, but like any financial commitment, there are a few details worth keeping in mind. Here’s what to look out for before you sign your agreement.

Leaving your job or taking parental leave

What you need to know: When you sign up to a vehicle lease, you’re entering into a contract - similar to a mobile phone. If you hand the car back early, this will typically invoke early termination fees.

• Fees can be up to 50% of the total remaining lease costs
• Some providers, like loveelectric, offer early termination protection or allow you to transfer the lease to your new employer, mitigating the cost
• Businesses should always be protected by a Zero Risk Guarantee that ensures they’re never out of pocket if an employee leaves

Best practice: Always check early termination clauses before signing up

Career changes and promotions

Savings only get better the more you earn, so pay rises and promotions should only have a positive impact on your lease cost.

However, if your gross salary is set to decrease then think carefully about taking out a lease. Your net pay must remain above National Minimum Wage after deductions, so you may be forced to give the car back if your salary dips below the threshold.

If you have questions around maternity leave and pay, please get in touch with one of our salary sacrifice experts, here.

If you would like a more detailed rundown on whether salary sacrifice is worth it for you, check out our dedicated article here. 

Impact on pensions, statutory pay, and mortgages

Salary sacrifice slightly reduces your gross pay, which can affect how some financial calculations are made. The impact is usually minimal, but it’s worth understanding how it works across pensions, mortgages, and statutory benefits.

Pension contributions:

Most employers use your notional (pre-sacrifice) salary to calculate pension contributions, ensuring you’re not disadvantaged for taking part in the scheme. It’s always worth checking your company’s policy or pension plan to confirm this protection is in place.

Mortgage applications:

We strongly advise seeking independent financial advice if you’re considering leasing a car and also plan to apply for a mortgage or are remortgaging. 

• Lenders will take into consideration the reduction in your salary, so you may be able to borrow less if you have an EV lease.
• Timing applications around scheme participation is important.

Statutory benefits:

We also advise to seek independent financial advice if you may be expecting a child or are planning to go on maternity leave.

• Statutory Maternity Pay: This is calculated on the reduced gross salary, so will need to ensure average weekly earnings stay above £125/week to maintain entitlement.
  
  • loveelectric has enhanced maternity leave protections. Talk to an advisor to learn more. 
• Child Benefit: High income charge calculated on reduced salary - salary sacrifice can help avoid the charge if income exceeds £60,000
• Tax-Free Childcare: If you earn over £100,000/year of adjusted net income, you’ll no longer be entitled to free childcare. However, leasing a vehicle through a salary sacrifice scheme can bring you back under the threshold, affording you the tax-free childcare.

Who benefits most from salary sacrifice

Salary sacrifice schemes offer the greatest value to:

• Higher rate taxpayers (especially those in the 60% ‘tax trap’
• Employees wanting electric vehicles
• Drivers seeking complete peace of mind, all-inclusive packages
• People without access to competitive personal lease rates
• Individuals prioritising convenience and predictable costs

How to get your employer on board to offer an EV salary sacrifice scheme

If your company doesn’t yet offer salary sacrifice for electric cars, it’s often just a matter of asking. Many employers introduce the scheme after one employee request. It’s cost-neutral, easy to manage, and sends a strong message about sustainability and employee wellbeing.

To set your ask up for success, you should:

1. Research and prepare your case:

Before approaching your employer, take a little time to prepare. The stronger your case, the easier it’ll be for them to say yes.

Most decision-makers care about three things: benefits, sustainability, and—often—getting an EV for themselves. Framing your proposal around these priorities makes it immediately relevant. A salary sacrifice car scheme ticks all three boxes. 

It helps attract and retain staff, supports the company’s ESG goals by reducing Scope 3 emissions, and gives senior leaders a practical way to drive electric too.

Here are some places to start:

• Gather data on competitors who are already offering salary sacrifice schemes 
• Cite relevant retention data
  
  • 44% of employees say they're staying with their current employer because of the benefits package, while 39% would leave for better benefits elsewhere even with no pay increase (WTW Global Benefits Attitudes Survey).
• Prepare a one-page summary of the scheme benefits
  
  • Find out more about the scheme, here.

If you’d like help framing your case, you can learn more about the loveelectric scheme here—including setup timelines, risk protection, and tools to share directly with your HR or leadership team.

2. Build internal support:

Once you understand the business case, the next step is to show there’s genuine interest across the company. This turns your proposal from a personal request into something that clearly benefits the wider team.

Start by having a few informal conversations with colleagues, especially those who commute or have mentioned wanting an electric car. Gauge how many people would seriously consider joining the scheme if it were offered.

If the response is positive, capture that interest in a simple expression of interest form or internal poll. Some people even create an employee petition or Slack thread to make the support visible. 

You can also identify a few “EV champions” in different departments. Having visible advocates across the business helps leadership see that this isn’t just one person pushing for a perk, but part of a broader shift toward cleaner, smarter commuting.

Keep a short record of how many people express interest. That way, when you approach HR or management, you can show there’s real momentum behind the idea.

3. Present the business case to decision-makers:

Once you’ve built support, it’s time to take the idea to the people who can make it happen. Start by scheduling a short meeting with HR, your manager, or a member of the leadership team (whoever oversees employee benefits or sustainability initiatives).

Lead the conversation with what matters most to them: the business benefits. A salary sacrifice car scheme is cost-neutral, easy to set up, and enhances recruitment and retention by giving employees access to a meaningful, high-value benefit. 

It also helps the company strengthen its green credentials by cutting Scope 3 emissions through cleaner commuting.

If you’re speaking to someone unfamiliar with the model, explain that employees lease their cars directly through the provider, while the company facilitates payroll deductions. With loveelectric, every scheme comes with a Zero Risk Guarantee, meaning the employer is protected from unexpected fees if an employee leaves or their circumstances change.

Finally, position it as a competitive advantage. Many leading UK businesses already offer EV salary sacrifice, and adding it to your company’s benefits package helps attract and retain top talent, particularly those motivated by sustainability and cost savings.

4. Address common employer concerns:

It’s normal for decision-makers to have a few questions before saying yes. Here are the most common ones, and how to answer them confidently.

“What if employees leave during the lease?”

Modern providers like loveelectric include a Zero Risk Guarantee, meaning the business isn’t left covering costs if someone leaves early or their circumstances change.

“Is it complicated to manage?”

Not at all. The provider handles setup, applications, and ongoing admin. With loveelectric, HR involvement averages just 15 minutes per month thanks to automated payroll reports and a dedicated support team.

“What about insurance and liability?”

Everything’s built in. The monthly cost includes fully comprehensive insurance, breakdown cover, and accident management, so there’s no extra paperwork or exposure for the company.

5. Provide next steps:

Keep the momentum going by giving your employer clear, easy actions to take.

Suggest arranging a no-obligation demo with the loveelectric team so they can see how the scheme works in practice. Share our brochure or employer resources with senior leadership for a deeper look at setup, costs, and ongoing support.

If they’re open to exploring further, recommend starting with a pilot programme where a handful of interested employees can prove how simple the scheme is to run. You can also back up your case with case studies from other companies that have already rolled out EV salary sacrifice successfully.

Supporting your case with data:

• Average setup time: 1-2 weeks with most providers
• Employer National Insurance savings: for every car that an employee takes out, the business saves on their National Insurance Contributions. Sometimes even offsetting the 13.8% to 15% rise which came into effect in April 2025.
• Employee satisfaction: Studies show salary sacrifice ranks above pension contributions in desirable benefits
• Environmental impact: Helps companies meet sustainability targets, reduce their Scope 3 emissions and improve overall ESG benchmarking.

If your employer remains reluctant:

• Suggest they survey all employees to gauge broader interest
• Offer to lead the research phase and present findings
• Ask if they'd reconsider in future reviews of employee benefits

Get the car you want, for a price you love

Ready to start your salary sacrifice journey? loveelectric offers:

Unique advantages:

• Access to both new and used EVs
• Save 30-60% compared to personal leasing 
• Comprehensive employer protection
• Expert guidance throughout the entire process
• Access to up to 60% off charging with loveelectric Charge card

Next steps:

1. Check if your employer already partners with us
2. Use our eligibility checker to confirm your qualification
3. Browse our extensive EV catalogue
4. Refer your employer if they don't offer the scheme yet

How to get a car on salary sacrifice FAQs

How do I apply for a salary sacrifice car?

First, confirm your employer offers a scheme through a provider like loveelectric. If available, request access to their platform, choose your car, agree contract terms and complete the application process. Your employer's HR team will handle payroll setup, typically taking 2-4 weeks total.

What types of cars do I have access to through salary sacrifice?

Most schemes focus heavily on electric vehicles due to tax advantages, but hybrid and conventional cars are often available too. Leading providers should offer access to all EV models on the UK market, including popular brands like Tesla, BMW, Audi, and more affordable options from manufacturers like MG and Hyundai.

How much can I save with a salary sacrifice car?

Savings vary by tax bracket and vehicle choice. Electric car salary sacrifice can save up to 60% compared to personal leasing, with higher-rate taxpayers seeing the biggest benefits. Additional savings come from included insurance, maintenance, and breakdown cover, plus potential fuel savings of switching from petrol/diesel to electric.

Are EVs the only cars I can get through salary sacrifice?

No, but electric vehicles offer the best value. Electric cars have BIK rates of just 3% compared to up to 37% for petrol/diesel cars. Many schemes include hybrid and conventional vehicles, though the tax savings are significantly lower.

What do I do if my employer doesn't offer salary sacrifice?

Present the business case to your HR team or manager, highlighting benefits like improved employee retention, National Insurance savings, and sustainability goals. Provide them with information about scheme providers and setup processes to make implementation easier.

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