This is an employer provided scheme where you can agree to give up part of your cash pay or salary in exchange for services or goods.
These are well established with “Bike to Work” and pension schemes. The difference with this is that in exchange for part of your salary, your employer will agree to provide you with an insured company vehicle that is also maintained and on which road tax is paid.
You will no longer pay tax or National Insurance (NI) on the salary that you sacrifice. You will however pay tax on the company car that you receive in return, but depending on the car that you choose, you can minimise this cost. You will not pay any NI costs on the car.
This salary sacrifice product is provided as part of your flexible benefits scheme.