By joining the scheme, you agree to sacrifice a portion of your gross salary, in return for your employer providing you with a car. We will confirm the amount of salary sacrifice in the Driver Order Form. Because this is technically a reduction in your salary, you are required by law to agree to have your gross salary reduced.
Please note that you will no longer pay income tax or National Insurance Contributions on the amount of salary you have sacrificed. The rates of income tax and National Insurance Contributions that apply to your salary are found here:
You will be required to pay tax on the company car. The car is taxed as a benefit in kind (BiK). BiK is currently 2% for 2022- 2025. BiK will be collected as part of your monthly payroll. You may amend your tax code to account for the car (and resultant requirement to pay BiK) via HMRC’s online portal or HMRC may do this following your employer notifying the benefit is provided: www.gov.uk/update-company-car-details.
If the BiK rates change after 2025, your employer may need to amend your tax code.